Power loan approval by ADB likely within a fortnight
Saturday, 16 June 2007
FHM Humayan Kabir
The Asian Development Bank (ADB) is likely to approve US$465 million as loan to Bangladesh for power generation projects and improving the distribution systems. The approval is expected in the Board meeting of the multilateral donor agency scheduled for June 26.
Economic Relations Division (ERD) Secretary, Aminul Islam Bhuiyan, told the FE that the ADB would place the $465 million loan proposals in its Board meeting on June 26. "We are expecting the loan to get approval of the Board," he said.
The negations between the ERD and the Manila-based lender for the proposed credit has been completed in September last year and the loan agreement was to be signed within November after approval of the bank's board.
However, the donor agency has gone back from their earlier position and started monitoring the interim government's activities instead of placing the loan proposed to the Board for approval, an official in the ERD said.
Meantime, the ADB sent several missions from its headquarters to review the reforms in the power sector undertaken by the interim government in Bangladesh.
The government will install two power generation plants, each having a capacity of 150-megawatt (MW) at Sirajganj and Khulna, build three power transmissions lines and six distribution lines through the ADB loan.
According to official sources, the state-owned Electricity Generation Company Bangladesh (EGCB) will set up the proposed two power plants and the Power Grid Company of Bangladesh (PGCB) will implement the three transmission projects, the Dhaka Electric Supply Authority (DESA), four distribution projects and the Dhaka Electric Supply Company Limited (DESCO), the remaining two distribution projects.
Meanwhile, Finance Adviser, Mirza Azizul Islam at a bilateral meeting with the ADB President, Haruhiko Kuroda, in Kyoto of Japan on May 6 requested him to extend their support and approve $465 million loan in its next Board meeting for Bangladesh's power sector.
About the terms and conditions of the loan, a senior ERD official said that out of the proposed $465 million credit, $400 million would be hard-term and the remaining $65 million would be concessional (soft term).
Meanwhile, the EGCB has started preparing the tender documents for the two power plants in order to expedite their implementation.
A power Division official said after review of the draft tender documents, the donor agency would finalise it for floating.
After signing the loan deal, the procedure to set up the power plants will start in full swing aiming to add 300mw power by the year 2010, the official expressed his hope.
Apart from the aforesaid projects, the ADB is also financing the installation of a peaking power plant at Siddhirganj having a generation capacity of 240MW.
The Asian Development Bank (ADB) is likely to approve US$465 million as loan to Bangladesh for power generation projects and improving the distribution systems. The approval is expected in the Board meeting of the multilateral donor agency scheduled for June 26.
Economic Relations Division (ERD) Secretary, Aminul Islam Bhuiyan, told the FE that the ADB would place the $465 million loan proposals in its Board meeting on June 26. "We are expecting the loan to get approval of the Board," he said.
The negations between the ERD and the Manila-based lender for the proposed credit has been completed in September last year and the loan agreement was to be signed within November after approval of the bank's board.
However, the donor agency has gone back from their earlier position and started monitoring the interim government's activities instead of placing the loan proposed to the Board for approval, an official in the ERD said.
Meantime, the ADB sent several missions from its headquarters to review the reforms in the power sector undertaken by the interim government in Bangladesh.
The government will install two power generation plants, each having a capacity of 150-megawatt (MW) at Sirajganj and Khulna, build three power transmissions lines and six distribution lines through the ADB loan.
According to official sources, the state-owned Electricity Generation Company Bangladesh (EGCB) will set up the proposed two power plants and the Power Grid Company of Bangladesh (PGCB) will implement the three transmission projects, the Dhaka Electric Supply Authority (DESA), four distribution projects and the Dhaka Electric Supply Company Limited (DESCO), the remaining two distribution projects.
Meanwhile, Finance Adviser, Mirza Azizul Islam at a bilateral meeting with the ADB President, Haruhiko Kuroda, in Kyoto of Japan on May 6 requested him to extend their support and approve $465 million loan in its next Board meeting for Bangladesh's power sector.
About the terms and conditions of the loan, a senior ERD official said that out of the proposed $465 million credit, $400 million would be hard-term and the remaining $65 million would be concessional (soft term).
Meanwhile, the EGCB has started preparing the tender documents for the two power plants in order to expedite their implementation.
A power Division official said after review of the draft tender documents, the donor agency would finalise it for floating.
After signing the loan deal, the procedure to set up the power plants will start in full swing aiming to add 300mw power by the year 2010, the official expressed his hope.
Apart from the aforesaid projects, the ADB is also financing the installation of a peaking power plant at Siddhirganj having a generation capacity of 240MW.