The socio-environmental safeguard issues for electric power project financing is a very new concept in Bangladesh. Due to increase in private sector power generation in the country including Public Private Partnership basis the role of financial institutions become crucial. The supervising of social and environmental safety issues are also have to be more vigorous as the generation sources shifting from public to private sector. As most of the private sector investment channelized through financial institutions, so they can take a effective role to ensure the safeguard issues in the whole project life cycle. Here, the possible impacts in different project phases, anticipated affects and mitigation measures are well described. To ensure and implementation of the measures the possible policy responses are also discussed.