The Asian Development Bank (ADB) has signed a $24.3 million financing package with Muktagacha Solartech Energy Limited (MSEL) to establish a grid-connected solar photovoltaic power plant in Mymensingh.
As the sole mandated lead arranger, ADB arranged, structured, and syndicated the financing package for MSEL, which is owned by Bangladesh-based energy company Joules Power Limited (JPL).
It comprises a $15.5 million loan from ADB and an $8.8 million loan from Leading Asia's Private Infrastructure Fund 2 (LEAP 2), administered by the ADB, according to an ADB press statement.
The project will build and operate a 20-megawatt (MW) grid-connected solar photovoltaic power plant-one of the initial private sector utility-scale solar facilities in the country to secure support from international financiers.
The solar power plant will generate 37.9 gigawatt-hours of electricity annually and avoid 18,344 tonnes of carbon dioxide emissions annually, it added.
"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," ADB Director General for Private Sector Operations Suzanne Gaboury explained.
Renewable energy comprises only 4.5 per cent of Bangladesh's total power capacity.
"We are thrilled to secure financing from ADB for our second solar project in the country," JPL Managing Director Nuher Latif Khan said, adding that 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.
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.
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