The Asian Development Bank (ADB) has signed a financing package worth $24.3 million with Muktagacha Solartech Energy Limited (MSEL) to establish a grid-connected solar photovoltaic power plant in Mymensingh.
As the sole mandated lead arranger, the Manila-based financial institution took charge of arranging, structuring, and syndicating the financing for MSEL, owned by Bangladesh's Joules Power Limited (JPL).
The funding includes a $15.5 million loan from ADB and an $8.8 million loan from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which is administered by ADB, according to a press release.
The project will develop and operate a 20-megawatt (MW) grid-connected solar plant, marking one of Bangladesh's first private-sector utility-scale solar facilities supported by international financiers. Once operational, the plant is expected to produce 37.9 gigawatt-hours of electricity annually and prevent 18,344 tons of carbon dioxide emissions per year.
Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted the significance of this initiative:
“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.”
Gaboury also commended JPL for its innovative approach in the renewable energy sector, saying, “ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh's renewable energy sector, to advance sustainable solutions.”
Renewable energy currently accounts for only 4.5% of Bangladesh’s total power capacity.
Nuher Latif Khan, Managing Director of JPL, expressed optimism about the collaboration:
“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, part of the Bangladesh-based Expo Group, was established in 2010. The conglomerate has diversified interests in renewable energy, international logistics, freight forwarding, and infrastructure development.
LEAP 2, a fund managed by ADB with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA), supports sustainable private-sector infrastructure projects. Its focus includes reducing carbon emissions, improving energy efficiency, and providing essential services like health care, education, and communication across ADB’s developing member countries.
(Source: UNB)
BD-Pratidin English/Mazdud
