ADB to fund $24.3m for solar power plant

Staff Reporter :

The Asian Development Bank (ADB) has signed an agreement to finance a $24.3 million package for a 20-megawatt (MW) solar photovoltaic power plant in Mymensingh, Bangladesh. The project will be developed by Muktagacha Solartech Energy Limited (MSEL), a subsidiary of Bangladesh-based Joules Power Limited (JPL).

ADB acted as the sole mandated lead arranger, structuring and syndicating the financing package, which 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), administered by ADB.

This project is among the first private-sector utility-scale solar power facilities in Bangladesh to secure backing from international financiers. It is expected to generate 37.9 gigawatt-hours of electricity annually, reducing carbon dioxide emissions by 18,344 tonnes each year.

Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted the project’s significance in promoting renewable energy in Bangladesh. “ADB’s financing aims to advance sustainable energy solutions and support private sector involvement in renewable energy development,” she said.

JPL Managing Director Nuher Latif Khan expressed excitement about securing ADB’s support for their second solar project in Bangladesh. “This milestone underscores JPL’s commitment to sustainability and the pursuit of renewable energy growth,” he noted.

LEAP 2, a fund managed by ADB with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA), focuses on sustainable infrastructure projects that reduce carbon emissions and enhance energy efficiency in ADB’s developing member countries.

Renewable energy currently constitutes only 4.5 per cent of Bangladesh’s total power capacity, making this project a critical step towards expanding the nation’s sustainable energy portfolio.