Bangladesh to get $205 million ADB loan to improve power supply

December 23, 2015 OPINION/NEWS

By

Sheuli Akter

The Bangladeshi government has signed a $205 million loan agreement with the Asian Development Bank (ADB) for increasing access to a reliable supply of electricity and improving efficiency and capacity of power systems in Bangladesh.

Mohammad Mejbahuddin, Senior Secretary, Economic Relations Division (ERD), and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission of ADB, signed the agreements on behalf of Bangladesh and ADB respectively, on Tuesday at a ceremony in the capital city.

The assistance is the third tranche of the $700 million Power System Expansion and Efficiency Improvement Investment Program (PSEEIIP) approved by ADB in 2012.

ADB assistance under third tranche of the PSEEIIP will help replace aging steam and gas turbine power plants with a more efficient 400 MW gas-fired combined cycle power plant at the Ashuganj Power Station complex. It will also upgrade and construct 72 kilometers of transmission lines, and four substations. Existing analog billing meters will be replaced by 700,000 pre-payment meters in Dhaka Division.

“The project will generate 400 MW of electricity, using the same amount of energy that previously produced 220 MW, achieving more than 80% efficiency increase in energy use,” said Country Director Kazuhiko Higuchi. “In addition to bringing more stable and reliable electricity supply to users, the project also aims for higher operational and financial efficiency in the distribution utilities by bringing in prepaid meters in an operational scale.”

The Islamic Development Bank is co-financing the third tranche of the overall program.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.

In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion, the release added.

 

 

 

 

 

Sheuli Akter

Sheuli Akter, from Bangladesh, is a Special Correspondent and Editor of NsNewsWire, (Bangladesh’s First Press Newswire).  Previously she had worked for Bangladesh’ top news agency, United News of Bangladesh (UNB) and top newspaper (now defunct) The Bangladesh Observer. She also gained an honourable mention in the first ever World Media Summit WMS Awards for ‘Exemplary News Professionals in Developing Countries’, receiving the award in Beijing in January 2015.

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