Around $581.2m is being invested in a project to improve Bangladesh’s energy supplies, in a move aimed at helping the country and its industrial sectors – including garment manufacturers – tackle power shortages and interruptions.
The Asian Development Bank (ADB), which is loaning $300m to the scheme, says shortages are currently undermining the economy and slowing efforts to reduce poverty. It adds that the new Power System Efficiency Improvement Project will help meet urgent need for more energy-efficient generating plants and greater use of renewable power sources.
Ageing thermal plants, inadequate natural gas supplies and lack of diverse power sources have left Bangladesh with a large gap between electricity supply and demand. Only 49% of people have access to electricity, and frequent shortages and unreliable supplies have slowed economic growth.
“Greater access to clean, reliable power will bring multiple benefits such as increased economic activity and new opportunities in agriculture, garment manufacturing and other businesses which will benefit the poor, including women,” said Priyantha Wijayatunga, a senior energy specialist at ADB’s South Asia department.
The project will fund the replacement of five ageing generation units at Ashuganj power station with a new energy-efficient combined cycle power plant using natural gas as the fuel source.
It will also finance a 5MW solar photovoltaic generating system that will connect to the national grid, along with a hybrid wind, solar and diesel system on the island of Hatiya.
The Islamic Development Bank is providing co-financing of $200m, with the Government of Bangladesh extending over $81m for a total project cost of almost $581.2m.
