The Asian Development Bank or ADB has approved a $500 million credit for Bangladesh to develop an 800 megawatt power plant in Khulna along with associated connections to natural gas and power transmission facilities.
In the face of rising demand for energy in the growing economy, the Rupsha power plant will be the “first of its kind in Bangladesh”, ADB Energy Specialist Aziz Yusupov said, according to a statement from the Manila-based bank.
The plant will stimulate business expansion and create new job opportunities by providing additional electricity supply to about 300,000 consumers, Yusupov said.
The ADB-financed project design will ensure that the Rupsha plant uses the latest combined cycle technology, which offers the highest efficiency to convert gas to electricity, according to the statement.
It will also use the most advanced water treatment processes to purify and recycle liquid waste at the end of the industrial process, leaving zero discharge.
Gas distribution pipelines of 12 kilometers will be installed to supply gas to the Rupsha power plant.
The project will also finance construction of a 230-kilovolt switchyard at the power plant and 29km of high capacity transmission lines to transfer generated electricity from Rupsha to the grid.
To ensure adequate institutional capacity, the project will conduct overall institutional strengthening of the executing agency, the North-West Power Generation Company Limited, including business processes upgrade and training for implementation and operation of the system, maintenance, monitoring, and environment and social safeguards.
The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in cofinancing and the government contributing $338.5 million on top of ADB’s support.
The project is due to be completed by the end of June 2022.
Grant financing of $1.5 million will also be provided from ADB’s Japan Fund for Poverty Reduction, funded by the Government of Japan, to improve living standards in nearby communities, ADB said in the statement.