Bangladesh’s renewable energy ambitions depend on bankable Power Purchase Agreements (PPAs), but the current template places most risks on private investors while offering limited protection in return. Applying a contract-theoretic lens, this study finds that enforcement strength and risk allocation are the weakest links in public–private PPAs, both significantly lower than in private–private deals. Regional peers like Vietnam, India, and the Philippines show that bankability can be improved either by rewriting the contract or by layering protection mechanisms like escrow accounts, deemed contracts, and multiparty arrangements around it, but guarantees only work when backed by genuine institutional follow-through. A calibrated, sequenced reform package, covering payment security, enforcement, flexibility, and inter-agency coordination, can attract Chinese and other foreign investment without abandoning legitimate public-interest safeguards.

Authors: Abrar Ahammed Bhuiyan and Khondaker Golam Moazzem
Publication Period: October 2026