AsianScientist (Aug. 13, 2011) – The Asian Development Bank (ADB) is extending a US$300 million energy infrastructure loan for a project to address Bangladesh’s critical power shortages.
In addition, the Islamic Development Bank is providing co-financing of US$200 million, with the Government of Bangladesh extending over US$81 million for a total project cost of almost US$581.2 million.
By mid-2017, five aging generation units at Ashuganj power station will be replaced with a new energy-efficient combined cycle power plant using natural gas as the fuel source.
A five megawatts (MW) solar photovoltaic generating system will connect to the national grid, along with a hybrid wind, solar, and diesel system on the island of Hatiya. Streetlights in the cities of Barisal, Chittagong, Dhaka, Khulna, Rajshahi, and Sylhet will feature solar and light emitting diode technology.
“Energy shortage is the most critical infrastructure constraint on Bangladesh’s economic growth,” said Priyantha Wijayatunga, a Senior Energy Specialist at ADB’s South Asia Department.
“Greater access to clean, reliable power will bring multiple benefits such as increased economic activity and new opportunities in agriculture, garment manufacturing, and other businesses which will benefit the poor, including women,” he said.
These initiatives will alleviate some of Bangladesh’s unmet electricity demand, estimated at over 1,200 MW for 2011, and cut Bangladesh’s carbon dioxide emissions by hundreds of thousands of tons a year.
Currently, only 49 percent of people in Bangladesh have access to electricity. The frequent shortages and unreliable supplies have perpetuated underdevelopment with nearly half the population living below the extreme poverty line of US$1.25 a day.
The project’s gender action plan will also ensure women can benefit equally from energy-related employment and livelihood opportunities. This is funded by an ADB technical assistance grant of US$350,000.
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Source: ADB.
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