ADB to lend $500m for 800-MW power plant
The Asian Development Bank yesterday signed agreements to provide $500 million in loans to develop a 800-megawatt power plant in Khulna along with associated connections to natural gas and power transmission facilities.
This will be a state-of-the-art power plant using the latest zero-liquid discharge technology, making it the first of its kind in Bangladesh. The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in co-financing and the government $338.5 million.
The project is due to be completed by the end of June 2022. The project will provide additional electricity supply to about 300,000 consumers, create new jobs and stimulate business expansion.
To supply gas to the Rupsha power plant, the project will construct 12 kilometres of gas distribution pipelines, and finance construction of a 230-kilovolt switchyard and 29 km of high capacity transmission lines to transfer generated electricity to the national grid.
The project will also help in institutional strengthening of the executing agency, the North-West Power Generation Company Limited, by implementing a modern enterprise resource planning system, and providing training for implementation and operation of the system.
“This megaproject builds on ADB's strong and sustained presence in the power sector of Bangladesh, and it will use the latest proven combined cycle technology, which offers the highest efficiency to convert gas to electricity,” said Manmohan Parkash, country director of ADB.
This environment friendly project will significantly improve energy security and enhance availability of efficient and cleaner energy.
It would also help in institutional strengthening of the executing agency, the North-West Power Generation Company Limited, by implementing a modern enterprise resource planning system, and providing training for implementation and operation of the system.
Grant financing of $1.5 million will also be provided from ADB's Japan Fund for Poverty Reduction, funded by the Government of Japan, to improve living standards in nearby communities.
Focusing on vulnerable households and women, activities will include increasing awareness on safe and efficient use of electricity, training on livelihood and job opportunities, and providing school laboratory facilities.
Muhammad Alkama Siddiqui, additional secretary of the Economic Relations Division, and Parkash signed the loan agreements at a ceremony in Dhaka.