ZCZC
BSS-07
ADB-ASSISTANCE-AGREEMENT
ADB gives $500m for state-of-the-art power plant in Khulna
DHAKA, Aug 2, 2018 (BSS) – The Asian Development Bank (ADB) and the
Government of Bangladesh today signed agreements for $500 million in loans to
develop a state-of-the-art 800-megawatt (MW) power plant in Khulna, along
with associated connections to natural gas and power transmission facilities.
Additional secretary (ADB Wing), of the Economic Relations Division (ERD)
Muhammad Alkama Siddiqui and Manmohan Parkash, Country Director, ADB, signed
the loan agreements on behalf of Bangladesh and ADB, respectively, at a
ceremony at the ERD in the city’s Sher-e-Bangla Nagar area.
“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 the ADB country director.
“ADB places higher importance on introducing new and high-impact
technologies to benefit member countries. 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,” he added.
Highlighting benefits of the project, Parkash also said it will provide
additional electricity supply to about 300,000 consumers, create new jobs,
and stimulate business expansion.
This environment friendly project will significantly improve energy
security and enhance availability of efficient and cleaner energy.
To supply gas to the Rupsha power plant, the project will construct 12
kilometers (km) 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.
Besides, 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 about safe and efficient use of electricity, training on
livelihood and job opportunities, and providing school laboratory facilities.
The total cost of the project is $1.14 billion, with the Islamic
Development Bank contributing $300 million in cofinancing and the government
contributing $338.5 million. The project is due to be completed by the end of
June 2022.
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