BEZA, BPDB ink MoU for Bangladesh’s 1st PPP-based solar power project
The Bangladesh Economic Zones Authority (BEZA) and the Bangladesh Power Development Board (BPDB) today signed a landmark Memorandum of Understanding (MoU) to develop Bangladesh’s first solar power project on government-owned land under a Public-Private Partnership (PPP) modality. The MoU was signed by Dr. Julia Moin, Secretary of the BEZA Executive Board and Joint Secretary to the Government, and Afroza Sultana, Secretary of BPDB, in the presence of senior officials from the energy and investment sectors at a function at BPDB in the city, said a press release.
The agreement marks a significant step toward integrating renewable energy infrastructure into the country’s industrial development strategy and creating a framework for utilizing unused government land for clean energy generation. Under the MoU, the two organizations will jointly develop a pilot solar power project on approximately 412 acres of land in Sonagazi Upazila of Feni district, which falls under the National Special Economic Zone extending across Mirsarai and Sonagazi.
The project will be implemented in accordance with the “Guidelines for Development of Renewable Energy Projects using Land Owned by Government Agencies under PPP Modality, 2026,” recently approved by the Ministry of Power, Energy and Mineral Resources. Officials said the MoU establishes a clear institutional framework for project implementation, defining the responsibilities of both agencies under a split-governance structure. According to the agreement, BEZA will act as the land-owning authority and will provide the project site while ensuring alignment with industrial requirements inside the economic zone. BPDB, on the other hand, will serve as the contracting authority responsible for technical procurement, grid integration and management of the Power Purchase Agreement (PPA).
Officials described the agreement as a strategic initiative to encourage private investment in renewable energy by reducing land acquisition complexities and providing a structured policy framework for investors. The Sonagazi project was officially designated as the country’s pilot renewable energy PPP initiative during a high-level ministerial meeting held on April 2, 2026. Earlier, the Advisory Committee on Economic Affairs approved the policy concept on March 6, 2025, while the ministry formally endorsed the guidelines on April 7 this year.
Sector experts believe the MoU could become a model for future renewable energy projects on government-owned land, allowing state agencies to transform underutilized assets into productive clean energy infrastructure. A key feature of the proposed project is the inclusion of Battery Energy Storage Systems (BESS), aimed at ensuring grid stability and reliable power supply for industrial consumers within the economic zone. Officials said the initiative is expected to strengthen Bangladesh’s green industrialization efforts, improve the environmental sustainability of economic zones and enhance the country’s attractiveness to environmentally conscious foreign investors.
As part of the next phase, authorities are preparing to organize a market sounding workshop to engage potential domestic and international investors and finalize the structure of the competitive bidding process. The government expects the pilot project to serve as a replicable framework for future PPP-based renewable energy developments across the country.
