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Actis launches power generation business

  • Special Correspondent
  • 5 July, 2022 12:00 AM
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Actis launches power generation business

Actis, a leading global investor in sustainable infrastructure, announced the launch of Bridgin Power, a power generation business that will pursue gas-fired power projects and focus on delivering an equitable energy transition in Southeast Asia.

Bridgin Power, launched on Monday, is targeting a total portfolio capacity of 1.2 GWs across the region by 2028, said a press release.

The target geographies include Vietnam, Indonesia, Thailand, Philippines, Malaysia, Bangladesh and Sri Lanka.

Bridgin recently closed its first investment by acquiring 49 percent shareholding in a 220MW Combined Cycle Gas Turbine power plant in Bhola of Bangladesh.

Bridgin acquired this stake from India’s Shapoorji Pallonji group, a global, diversified institution with a sector focus on engineering & construction, infrastructure, energy, real estate, water and financial services.

The Bhola power plant has a 22-year PPA with Bangladesh Power Development Board and achieved commissioning in Jun 2021.

The project was financed initially by Asian Infrastructure Investment Bank (AIIB), Islamic Development Bank (IsDB) and IDCOL Bangladesh, who have now been replaced by a consortium comprising SMBC, ING, DBS, Bank of China, Mizuho and SocGen.

Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis said, “We’re excited to be launching a business panning Southeast Asia.”

“We believe natural gas is an essential fuel for the medium term offering flexible low emission power as the region gradually transitions to more green energy source. Bridgin Power’s investment in Bhola power project in Bangladesh is a step in that direction,” he said.

Investing from our $6bn Actis Energy 5 Fund, in partnership with Bridgin’s management team, “we aim to deliver up to 1.2GW of

power capacity by 2028,” Aggarwal added.

Dennis Foo, Group Chief Executive Officer, Bridgin Power, said, “The acquisition of Bhola asset sets us on our path to create an energy platform of scale, using natural gas as a bridge to a sustainable and low carbon future.” Mukundan Srinivasan, Managing Director, Shapoorji Pallonji Infra, said, “We are happy to be associated once again with Actis for this transaction after our successful divestment of our solar assets to their India renewable platform.”

“This deal also demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for its stakeholders and be the partner of choice for high-quality international investors,” he added.

Shami Nissan, Partner and Head of Sustainability at Actis, commented, “Actis is a signatory to the Net Zero Asset Managers Initiative which supports the goal of Net Zero gas emissions by 2050.”

He said, “We recently announced our own portfolio-wide 2050 Net Zero target. Our investment in Bridgin Power will allow us to utilise our transition tool to continue our commitment as a core enabler of the global low carbon economy.”