The Asian Development Bank (ADB) has signed a $24.3 million financing agreement with Muktagacha Solartech Energy Limited (MSEL) to develop a grid-connected solar photovoltaic power plant in Mymensingh, Bangladesh.
As the sole mandated lead arranger, ADB structured, arranged, and syndicated the financing package for MSEL, a subsidiary of Bangladesh-based energy firm Joules Power Limited (JPL).
The package includes a $15.5 million loan from ADB and an $8.8 million loan from the Leading Asia's Private Infrastructure Fund 2 (LEAP 2), which is administered by ADB, according to an official release.
The project involves constructing and operating a 20-megawatt (MW) grid-connected solar photovoltaic power plant. It is among the first private-sector utility-scale solar initiatives in Bangladesh to receive backing from international financiers.
The solar power plant will generate 37.9 gigawatt-hours of electricity annually and avoid 18,344 tons of carbon dioxide emissions annually.
"ADB's financing aims to drive progress and advance sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector involvement in developing renewable energy in the country, while addressing the critical capital needs of renewable projects," said ADB Director General for Private Sector Operations Suzanne Gaboury.
"ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh's renewable energy sector, to advance sustainable solutions," added Suzanne.
Renewable energy comprises only 4.5% of Bangladesh's total power capacity. "We are thrilled to secure financing from ADB for our second solar project in the country," said JPL Managing Director Nuher Latif Khan.
"Collaborating with a globally respected financial institution like ADB underscores JPL's commitment to sustainability and represents a major milestone in our pursuit of sustainable growth in renewable energy initiatives," added Latif.
JPL was established in 2010 and is part of Expo group, a Bangladesh-based conglomerate that has a range of businesses, including renewable energy, international logistics, freight forwarding, and infrastructure development.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB's developing member countries.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members-49 from the region.
BDST: 1232 HRS, DEC 02, 2024
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