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ADB approves $500 million loan for 800 MW power plant in Bangladesh
- 6 years ago (2018-06-29)
- David Flin
The Asian Development Bank (ADB) has announced that it will provide $500 million in loans for the construction of an 800 MW power plant in Khulna, Bangladesh. After the ADB Board of Directors approved the loan, Aziz Yusupov, the bank’s Energy Specialist said that the Rupsha Power Plant will be an advanced combined cycle gas turbine power plant, the first of its kind in Bangladesh, and will be operational by June 2022. Yusupov said: “By providing additional electricity supply, the plant will stimulate business expansion and create new job opportunities.”
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In addition, the Rupsha plant will use advanced water treatment processes, and 12 km of gas distribution pipelines will be laid, and 29 km of high voltage transmission lines constructed to transfer the electricity to the grid.
The ADB loan will also finance construction of a 230 kV switchyard at the power plant.
The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in co-financing and the Bangladesh Government contributing $338.5 million on top of the ADB’s support.
In financial year 2017, peak demand in Bangladesh was 10,400 MW, while available generation capacity was 9479 MW. Net peak power demand is expected to exceed 13,300 MW by 2020, and 19,900 MW by 2025, while existing generation facilities will be gradually decommissioned and need replacements. The Bangladesh Government has prepared an investment plan to increase power generation capacity and improve the transmission and distribution network, aiming to achieve universal access to grid-connected electricity by 2021.