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POST TIME: 11 September, 2018 09:21:08 AM
ADB provides $357 million to support power transmission
Independent Online Desk

ADB provides $357 million to support power transmission

The Asian Development Bank (ADB) and the government of Bangladesh yesterday signed agreements for $350 million in loan and $7.5 million in grant for a project to develop two power lines in support of Bangladesh’s national target of electricity for all by 2021, reports UNB.

Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and ADB Country Director Manmohan Parkash signed the agreements at a ceremony in the capital on behalf of Bangladesh and ADB respectively.

In addition to a $350 million ADB loan, the assistances comprise a $7 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM), which will finance new high-technology energy efficient conductors.

Another $500,000 grant from the Republic of Korea e-Asia and Knowledge Partnership Fund (EAKPF) will promote socially inclusive growth with gender equality, according to the ADB.

“Bangladesh’s power sector has rapidly grown in recent years, but more investments are needed to meet the rising electricity demand in a fast-growing economy,” said Country Director Manmohan Parkash.

The ADB assistance aims to underpin the current impressive pace of growth and development by making power generation, transmission and distribution systems more efficient, reliable, and environmentally friendly, Parkash said.

“The project will promote business expansion, and create employment opportunities for local communities, including poor and socially disadvantaged people in southern and western zones of Bangladesh,” Parkash added.

The Southwest Transmission Grid Expansion Project builds on ADB’s previous work in the Bangladesh power sector, including the recently approved Rupsha 800 megawatt Combine Cycle Power Plant in Khulna, to address deficiencies in the transmission system through providing more efficient power transfer to the load centers of the southern and western zones.

KK