Abu Dhabi Fund approves $31.4m soft loan

The Abu Dhabi Fund for Development has approved a soft loan of US$ 31.40 million to Bangladesh for the proposed Shikalbaha 225 megawatt dual fuel (liquidgas) combined cycle power plant, reports UNB. The Abu Dhabi Fund will soon send the draft agreement for approval by the government before an accord is signed, said an official at the Economic Relations Division (ERD). He said the Kuwait Fund for Arab Economic Development (KFAED) has already signed a loan agreement for providing US$ 53 million for the proposed Shikalbaha 225 mw dual fuel combined cycle power plant. According to the ERD official, of the total estimated cost of US$ 286.43 million for the Shikalbaha project, US$ 204 million will be financed through foreign assistance. He said the KFAED credit will meet around 25 per cent of the total project cost. Apart from US$ 31.40 million from the Abu Dhabi Fund, the rest of the funding is expected from the Islamic Development Bank (IDB), OPEC Fund, Saudi Fund and the government. State-owned Power Development Board (PDB) will implement the project for meeting the increased demand of electricity in the greater Chittagong region.