Bangladesh Gets Loans for Power Projects

15 August 2011 (Last Updated August 15th, 2011 18:30)

The Asian Development Bank (ADB) and Islamic Development Bank (IDB) will help fund the development of new power projects in Bangladesh by June 2017. ADB will provide $300m for the construction of a new natural gas-fuelled power station, which will replace the ageing units at Bangladesh

The Asian Development Bank (ADB) and Islamic Development Bank (IDB) will help fund the development of new power projects in Bangladesh by June 2017.

ADB will provide $300m for the construction of a new natural gas-fuelled power station, which will replace the ageing units at Bangladesh's second-largest plant in Ashuganj, reports Bloomberg.

IDB will grant $200m and the Bangladesh Government will contribute $81m for the construction of a 5MW solar photovoltaic plant, a hybrid renewable-energy project on Hatiya island.

The loan granted by ADB has a term of 25 years, a grace period of five years and an interest rate determined by the bank's Libor-based lending facility.