Asian Development Bank approves multi-million loan to improve gas transfer in Bangladesh
The Asian Development Bank (ADB) will lend $167 million (€157m) to a Bangladesh development project that will see the Asian country boost natural gas production and expand transmission infrastructure.
The project, valued at a total of $453 million, aims to help the Bangladeshi government solve the country’s energy crisis by improving the availability of clean energy and increasing imports of natural gas through the transmission network, ADB’s finance specialist for energy Hongwei Zhang told Reuters.
In September, the ADB announced its intention to lend $8 billion to Bangladesh over the coming five years to improve the country’s infrastructure, which it sees as one of its major obstacles for growth.
A shortfall in supplies of natural gas has forced Bangladesh to burn oil, a costlier option, to generate electricity.
The gas development project is expected to be completed in late 2021 and the government of Bangladesh will provide $226 million out of its own pocket in funding.
The Asian Infrastructure Investment Bank (AIIB) is expected to lend an additional $60 million, subject to board approval, which will be managed by ADB.