Bangladesh: North Dhaka Waste to Energy Project

approved

The Project involves financing the development of a WtE facility located on the south side of the Amin Bazar landfill in North Dhaka and a six-kilometer 132kv transmission line to be connected to the Savar substation (the Project). It comprises four incineration lines and two sets of 35 MW turbo-generator systems. It will be the first WtE project in Bangladesh. China Machinery Engineering Corporation (CMEC) was chosen to develop the Project after a series of negotiations with the Government of Bangladesh (GoB), Dhaka North City Corporation (DNCC) and Bangladesh Power Development Board (BPDB) in 2020 and signed all main project agreements, including the Implementation Agreement (IA), the Power Purchase Agreement (PPA), the Waste Supply Agreement (WSA), and the Land Use Agreement (LUA) in late 2021. The Project is granted a concessional period of 25 years. BPDB will purchase electricity from the Project. DNCC will supply municipal solid waste and is responsible for providing land for the Project. The estimated total project cost is around USD467 million, which is expected to be funded by CMEC equity and debt financing from a lender group comprised of multilateral development banks, commercial banks, and a local development financing institution.