The Asian Development Bank (ADB) has signed a $24.3 million financing agreement with Muktagacha Solartech Energy Limited (MSEL) to develop a grid-connected solar photovoltaic power plant in Mymensingh, Bangladesh.

ADB acted as the sole mandated lead arranger, structuring and syndicating the financing package for MSEL, which is owned by Bangladesh-based energy company Joules Power Limited (JPL), according to a press release issued by ADB on Monday.

The package includes a $15.5 million loan from ADB and an $8.8 million loan from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which is administered by ADB.

The project will build and operate a 20-megawatt (MW) grid-connected solar photovoltaic power plant—one of the initial private sector utility-scale solar facilities in the country to secure support from international financiers.

The solar power plant will generate 37.9 gigawatt-hours of electricity annually and avoid 18,344 tons of carbon dioxide emissions annually.

‘ADB’s financing aims to drive progress and advance sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector involvement in developing renewable energy in the country, while addressing the critical capital needs of renewable projects,’ said ADB Director General for Private Sector Operations Suzanne Gaboury.

‘ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh’s renewable energy sector, to advance sustainable solutions.’

Renewable energy comprises only 4.5 per cent of Bangladesh’s total power capacity.

‘We are thrilled to secure financing from ADB for our second solar project in the country,’ said JPL Managing Director Nuher Latif Khan,

Collaborating with a globally respected financial institution like ADB highlights JPL’s commitment to sustainability and marks a significant milestone in the company’s pursuit of sustainable growth in renewable energy initiatives, Nuher said.

JPL was established in 2010 and is part of Expo group, a Bangladesh-based conglomerate that has a range of businesses, including renewable energy, international logistics, freight forwarding and infrastructure development.

LEAP 2 is an ADB-managed fund, with a $1.5 billion commitment from the Japan International Cooperation Agency. It targets sustainable private sector infrastructure projects that aim to reduce carbon emissions, enhance energy efficiency, and provide affordable healthcare, education, and communication services to ADB’s developing member countries, the release said.

Established in 1966 and owned by 69 members, including 49 from the region, ADB is committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty, it added.