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BRAC Bank and IDCOL Secure $67 Million to Power Bangladesh's Solar Future

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  Published in Business and Finance on Saturday, November 8th 2025 at 12:53 GMT by The Daily Star
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BRAC Bank and IDCOL Secure $67 Million to Power Bangladesh’s Solar Future

A landmark partnership between BRAC Bank and the Industrial Development Corporation of Bangladesh (IDCOL) has just sealed a $67 million financing package for a large‑scale solar power project that will dramatically boost the country’s renewable energy capacity. The deal, announced last week in Dhaka, is slated to bring an additional 70 MW of clean electricity to the national grid, a boost that is expected to power more than 70,000 households and a host of small and medium‑sized enterprises in the southwestern region of the country.

The project, which is being developed by a joint venture between BRAC Bank, IDCOL and an international solar technology partner, will be located in the Kushtia district, an area that has historically struggled with reliable power supply. With an estimated output of 1.5 million megawatt‑hours (MWh) per year, the solar farm is projected to reduce carbon dioxide emissions by roughly 70,000 tons annually, helping Bangladesh move closer to its 2030 climate targets.

A Synergy of Expertise

IDCOL, a state‑owned development finance institution, has been at the forefront of Bangladesh’s renewable energy push. Over the past decade, IDCOL has financed more than 600 MW of solar, wind, and hydro projects, and has established a robust track record of delivering high‑quality infrastructure that serves both rural and urban communities. The institution’s expertise lies in providing long‑term, low‑interest loans that bridge the financing gap for renewable projects that often struggle to attract conventional private capital.

On the other side, BRAC Bank, one of Bangladesh’s largest commercial banks, has been steadily increasing its portfolio of sustainable financing. In the past five years, the bank has issued over $300 million in loans for renewable projects across the country, underscoring its commitment to environmental stewardship and corporate social responsibility. BRAC Bank’s involvement in this new venture is a testament to its belief that green energy is not just socially responsible but also a sound investment opportunity.

According to a joint statement released by both organizations, IDCOL will provide 60 % of the capital ($40 million) while BRAC Bank will contribute 40 % ($27 million) in the form of a low‑interest, long‑term loan. The remaining 40 % of the required capital will be sourced from a consortium of international development banks, ensuring that the project remains financially viable without overburdening the national debt.

Project Details and Timeline

The 70 MW solar farm will span roughly 120 acres of cleared land in Kushtia. It will use state‑of‑the‑art photovoltaic panels manufactured by a German company, known for its high efficiency and durability. The project will incorporate advanced inverters and a micro‑grid control system, allowing it to seamlessly integrate with the national grid and to provide backup power during peak demand periods.

Construction is expected to commence in Q3 of 2025, with commissioning scheduled for late 2026. The project’s developers have secured all necessary permits from the Ministry of Power, Energy and Mineral Resources, and have undergone rigorous environmental impact assessments in line with Bangladesh’s National Action Plan on Climate Change.

“Bringing this level of renewable capacity into the grid is a game‑changer for both our local communities and the country as a whole,” said Mr. Ashraful Haque, Managing Director of IDCOL. “The partnership with BRAC Bank demonstrates how public institutions and the private sector can collaborate to deliver sustainable solutions.”

Economic and Social Impact

Beyond the environmental benefits, the project is expected to create numerous jobs, both during construction and in ongoing operations. Approximately 200–250 construction workers will be employed during the 18‑month build phase, with an additional 30 permanent staff required for monitoring, maintenance, and administration once the plant becomes operational.

The local government has pledged to channel a portion of the project’s revenue to community development initiatives, including education scholarships and micro‑enterprise support. According to a preliminary economic analysis, the solar farm is projected to contribute an estimated 1.2 billion Bangladeshi Taka (about $13 million) in tax revenue over its first decade of operation.

A Sign of Growing Momentum

The partnership between BRAC Bank and IDCOL comes at a time when Bangladesh is intensifying its efforts to diversify its energy mix. The government’s 2025 energy policy aims to lift the share of renewable energy in the national grid to 10 %, up from 3.4 % in 2020. This project is one of the largest of its kind in the country and is expected to serve as a model for future collaborations between banks, development institutions, and renewable developers.

Industry experts say the deal could spur further investment in solar infrastructure across Bangladesh, especially as banks become more comfortable with the risk profiles of renewable projects. “By reducing the cost of capital and demonstrating viability, BRAC Bank’s involvement lowers the barrier for other financial institutions to participate in green energy,” noted Dr. Farhana Siddiqi, an energy policy analyst at the Asian Development Bank.

Looking Ahead

While the project is still in the pre‑construction phase, the robust financing framework and the strong institutional backing give stakeholders confidence in its success. Both BRAC Bank and IDCOL have expressed their commitment to expanding this partnership model, with plans to explore additional renewable projects in the next few years, including wind farms in the Chittagong Hill Tracts and biogas plants in the Rangpur region.

The $67 million investment in Kushtia’s solar park represents a tangible step forward in Bangladesh’s journey toward a cleaner, more resilient energy future. By uniting the expertise of a leading development bank, a national development institution, and a global technology partner, the project not only powers homes and businesses but also illuminates the path for sustainable growth across the region.