File photo: Moneycontrol

Dhaka, Bangladesh (BBN)-The Asian Development Bank (ADB) is set to provide US$500 million loan to develop a state-of-the-art 800-megawatt (MW) power plant in Khulna.

The fund will also be used for power transmission facilities along with associated connections to natural gas, according to the ADB.

The government signed agreements with the ADB on Thursday in this connection.

Muhammad Alkama Siddiqui, additional secretary of the Economic Relations Division (ERD) under Finance Ministry and Manmohan Parkash, country director of the ADB, signed the deals on behalf of their respective organizations, at a ceremony in Dhaka.

The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in co-financing and the government contributing $338.5 million.

The project is due to be completed by the end of June 2022, the ADB added.

“This megaproject builds on ADB’s strong and sustained presence in the power sector of Bangladesh,” Mr. Parkash said in a statement.

The ADB country director also said it will use the latest proven combined cycle technology, which offers the highest efficiency to convert gas to electricity.

“This will be a state-of-the-art power plant using the latest zero-liquid discharge technology, making it the first of its kind in Bangladesh,” he noted.

Highlighting benefits of the project, Mr. Parkash also said it will provide additional electricity supply to about 300,000 consumers, create new jobs, and stimulate business expansion.

This environment friendly project will significantly improve energy security and enhance availability of efficient and cleaner energy, according to the ADB country director.

To supply gas to the Rupsha power plant, the project will construct 12 kilometers (km) of gas distribution pipelines, the ADB said in its press statement.

It will also finance construction of a 230-kilovolt switchyard and 29 km of high capacity transmission lines to transfer generated electricity to the national grid.

The project will also help in institutional strengthening of the executing agency, the North-West Power Generation Company Limited, by implementing a modern enterprise resource planning system, and providing training for implementation and operation of the system.