Dhaka, May 1 -- The absence of government payment guarantees has become a serious concern for private-sector solar power projects, with at least three plants facing prolonged delays in securing foreign financing despite finalising loan negotiations with international lenders.

Project developers say lenders such as the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) have agreed in principle to fund the projects.

However, the lenders are refusing to release the money without sovereign guarantees from the government, despite such assurances being part of the original power purchase agreements (PPAs), they add.

Of the three projects, one power plant has been supplying electricity to the national grid for ...