ADB provides Bangladesh 300 mln USD energy infrastructure loan

The Asian Development Bank (ADB) and the Bangladeshi government Wednesday signed an agreement for 300 million U.S. dollars energy infrastructure loan aimed at improving critical power shortages which are undermining the economy and slowing poverty reduction efforts. Iqbal Mahmood, Bangladesh's Economic Relations Division secretary, and Thevakumar Kandiah, country director of ADB's Bangladesh Resident Mission, signed the agreement on behalf of their respective sides here in Dhaka. The loan for the Power System Efficiency Improvement Project will help meet Bangladesh's urgent need for more energy-efficient generating plants and greater use of renewable power sources. Aging thermal plants, inadequate natural gas supplies and lack of diverse power sources have left the country with a large gap between electricity supply and demand, estimated at over 1,200 megawatts (MW) for 2011, said the Manila-based lender. It said only 49 percent of people have access to electricity, and frequent shortages and unreliable supplies have perpetuated underdevelopment with nearly half the population living below the extreme poverty line of 1.25 U.S. dollars a day. ADB said it also incorporates a gender action plan, funded by an ADB technical assistance grant of 350,000 U.S. dollars, that will ensure women are able to benefit equally from energy-related employment and livelihood opportunities.