IDB to provide $ 248.3mn for 3 BD projects

The Islamic Development Bank (IDB) is going to provide $ 248.3 million credit assistance to Bangladesh against three projects in power sector, sustainable housing for low-income urban communities and development of a technical teacher training institute.

 

Out of the $ 248.3 million credit assistance, the IDB is providing$ 220 million loan for the 400-MW Ashuganj (East) power plant efficiency improvement project in Bangladesh, $ 20 million for the Sustainable housing for the low-income urban communities and $ 8.3 million for a technical teacher training institute project in Bangladesh, reports the UNB.

 

An official at the Economic Relations Division (ERD) said the loan agreements for these three projects between the government of Bangladesh and the IDB are likely to be signed by March next.

 

With the signing, according to the official, the government will be able to have this year’s target of having $ 250 million fulfilled from the IDB as the Jeddah-based lending agency had earlier committed.

 

According to sources at the Power Division, the IDB assistance will help replace aging steam and gas turbine power plants with a more efficient 400-MW gas-fired combined cycle power plant at Ashuganj Power Station complex.

 

It will also help upgrade and construct 72 kilometers of transmission lines, and four substations. The existing analog billing meters will be replaced by 700,000 prepaid meters in Dhaka division.

 

The 400-MW Ashuganj (East) power plant efficiency improvement project is a five-year term project (Jan 2016-Dec 2020) and the total cost of the project is estimated at $ 530 million. Out of the amount, the ADB will provide $ 205 million from OCR, while $ 220 million will come from the IDB and $ 105 million from the national exchequer.

 

The Power Division is the executing agency and Ashuganj Power Station Company Ltd (APSCL), Power Grid Company of Bangladesh Ltd (PGCB) and Bangladesh Rural Electrification Board (BREB) are the implementing agencies of the projects under the program.

 

The main objective of this program is to enhance the capacity of power generations, transmission and distribution in the power sector of Bangladesh.

 

Earlier on February 16, the Board of Executive Directors of the Islamic Development Bank (IDB) approved the funding for the Ashuganj project.

 

Under the Sustainable housing for low-income urban communities to be implemented by the Bangladesh Municipal Development Fund under the Ministry of LGRD, small flats would be constructed for the conservancy workers in Faridpur and Mymensingh municipalities while low-cost flats to be constructed in Gazipur targeting the RMG workers of that area.

 

The Bureau of Manpower, Employment and Training (BMET) will implement the support to the development of technical teacher training institute project under the Ministry of Expatriates Welfare and Overseas Employment, aiming to build skilled manpower in line with the demand of national and international labor markets.