The Asian Development Bank (ADB) has provided $24.3 million in financing to Muktagacha Solartech Energy Limited (MSEL) to build a solar power plant in Mymensingh, Bangladesh. This project involves setting up a 20-megawatt (MW) grid-connected solar photovoltaic facility. ADB played a key role in the project as the sole lead arranger, managing and structuring the financing package.
The funding includes a $15.5 million loan from ADB and an $8.8 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which ADB administers. Owned by Bangladesh’s Joules Power Limited (JPL), the solar plant will produce 37.9 gigawatt-hours of electricity every year and help reduce 18,344 tons of carbon dioxide emissions annually. This is one of the country’s first private utility-scale solar projects supported by international funding.
Suzanne Gaboury, ADB Director General for Private Sector Operations, “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. ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh’s renewable energy sector, to advance sustainable solutions.”
Nuher Latif Khan, JPL Managing Director, said in a statement, “We are thrilled to secure financing from ADB for our second solar project in the country. Collaborating with a globally respected financial institution like ADB underscores JPL’s commitment to sustainability and represents a major milestone in our pursuit of sustainable growth in renewable energy initiatives.”
Renewable energy accounts for just 4.5% of Bangladesh’s total power capacity. Joules Power Limited (JPL), founded in 2010, is part of the Expo Group, a Bangladesh-based conglomerate involved in renewable energy, international logistics, freight forwarding, and infrastructure development.
The Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), managed by ADB, is backed by a $1.5 billion commitment from the Japan International Cooperation Agency. It supports sustainable infrastructure projects in ADB’s member countries, focusing on reducing carbon emissions, improving energy efficiency, and providing affordable healthcare, education, and communication services.Since its establishment in 1966, ADB has been dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with a strong commitment to eradicating extreme poverty. ADB is owned by 69 members, 49 of which are from the region.
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