AIIB approves $285m in loans to Bangladesh for power projectsStaff Writer | February 27, 2018
The Asian Infrastructure Investment Bank’s (AIIB) board of directors has approved a loan of up to $60 million for a project that will increase power generation capacity in Bangladesh and help the country respond to power shortages.
Asia The project will increase power generation
Once complete, the project will increase power generation by around 1,300 gigawatt hours annually.
Bangladesh Bhola IPP is one of three energy projects in Bangladesh that have received funding from AIIB. All three projects are aligned with the Government of Bangladesh’s target to achieve affordable electricity for all by 2021.
This approach will enhance distribution capacity, increase the number of rural and urban electricity consumers, improve efficiency in gas production, expand gas transmission pipeline capacity and increase power generation capabilities in Bangladesh.
The Bangladesh Bhola IPP project marks the first project AIIB has financed alongside the Islamic Development Bank and Infrastructure Development Company Limited.
The project will be developed by Shapoorji Pallonji Infrastructure Capital Company Private Limited through Nutan Bidyut (Bangladesh) Limited, a special-purpose vehicle incorporated in Bangladesh for the sole purpose of developing the project. ■