ADB inks $24.3m financing package for grid-connected solar plant in Bangladesh

Nearly 40 GWh of electricity will be generated annually.

The Asian Development Bank (ADB) and the Muktagacha Solartech Energy Limited (MSEL) have signed a $24.3m financing package to build a grid-connected solar photovoltaic (PV) power plant in Mymensingh, Bangladesh.  

In a statement, ADB, as sole mandated lead arranger, said it structured the financing package for MSEL, a Joules Power Limited subsidiary. The package includes a $15.5m ADB loan and an $8.8m loan from Leading Asia’s Private Infrastructure Fund 2.

The project will build and operate a 20-megawatt grid-connected plant, one of the initial private sector utility-scale solar facilities in the country to secure support from international financiers. The project is expected to generate 37.9 gigawatt-hours of electricity annually, reducing carbon emissions by 18,344 tonnes.

Renewable energy comprises only 4.5% of Bangladesh’s total power capacity.

“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,” said ADB Director General for Private Sector Operations Suzanne Gaboury.