ADB signs $24.3m deal for solar power plant in Bangladesh

The Asian Development Bank (ADB) finalised a $24.3 million financing package with Muktagacha Solartech Energy Limited (MSEL) to develop a 20-megawatt solar photovoltaic power plant in Mymensingh, Bangladesh.

The package includes a $15.5 million loan from ADB and $8.8 million from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), managed by ADB. This project, backed by Joules Power Limited (JPL), marks one of Bangladesh’s first private-sector, utility-scale solar ventures supported by international financing.

Expected to generate 37.9 gigawatt-hours of electricity annually, the plant will cut 18,344 tons of carbon dioxide emissions each year, helping Bangladesh move towards its renewable energy goals. Currently, renewables make up only 4.5 per cent of the country’s total power capacity.

“ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh’s renewable energy sector, to advance sustainable solutions,” said Suzanne Gaboury, ADB Director General for Private Sector Operations.

LEAP 2, supported by the Japan International Cooperation Agency, focuses on sustainable infrastructure projects that reduce carbon footprints across Asia-Pacific.

JPL Managing Director Nuher Latif Khan welcomed the collaboration, stating it underscores their commitment to driving renewable energy growth in Bangladesh.

Attribution: The Asian Development Bank (ADB)

Subediting: M. S. Salama