Asian Development Bank (ADB) and Bangladesh have signed $205m loan agreement for increasing access to reliable supply of electricity and improving efficiency and capacity of power systems in Bangladesh.
The assistance is the third tranche of the $700m Power System Expansion and Efficiency Improvement Investment Program (PSEEIIP) approved by ADB in 2012.
Economic Relations Division (ERD) Senior Secretary Mohammad Mejbahuddin and ADB Country Director Kazuhiko Higuchi yesterday signed the agreement on behalf of their respective organisations at a ceremony at the ERD, according to statement issued by ADB.
ADB assistance under third tranche of the PSEEIIP will help replace aging steam and gas turbine power plants with a more efficient 400mw gas-fired combined cycle power plant at the Ashuganj Power Station complex.
It will also upgrade and construct a 72-kilometer long transmission lines, and four substations. Existing analog billing meters will be replaced by 700,000 prepaid meters in Dhaka Division.
“The project will generate 400mw of electricity, using the same amount of energy that previously produced 220mw, achieving more than 80% efficiency increase in energy use,” said 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,” he added.
The Islamic Development Bank is co-financier of the third tranche of the overall program.