The Asian Development Bank (ADB) has signed a $17.7 million financing package with Spectra Solar Park Limited (SSPL) to invest in a 35-megawatt utility-scale solar photovoltaic plant in Bangladesh.
The solar park is one of the first private sector solar plants in Bangladesh to be financed by multilateral institutions, and will support the country’s efforts to attain long-term energy security and meet climate goals by stepping up its use of clean energy.
The agreement for the Spectra Solar Power Project was signed by the Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty, and Managing Director of Spectra Solar Park Limited Khan Md. Aftabuddin. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is cofinancing the project with ADB, said ADB on Wednesday.
“This project strongly demonstrates that the solar energy sector in Bangladesh is an attractive destination for private sector engagement,” said Chakraborty.
“This is a landmark project that will also incorporate very specific and meaningful design features to empower women and ensure a gender inclusive workplace.”
“Bangladesh is committed to combating climate change and increasing energy access from renewable energy sources,” said Aftabuddin.
“The Spectra Solar Power Project establishes important precedents for the solar energy sector in Bangladesh by adopting international best practices. We are grateful to ADB for their commitment and assistance on this project.”
Green Delta Capital served as lead arranger for the project.
“ADB’s financing with co-financing by DEG in this project will help to scale up solar projects and unlock foreign investments for renewable energy in Bangladesh,” said Managing Director and Chief Executive Officer of Green Delta Capital Md. Rafiqul Islam.
The financing comprises a loan from ADB and a loan from the ADB-administered Canadian Climate Fund for the Private Sector in Asia II (CFPS II).
The Canadian Climate Fund for the Private Sector in Asia (CFPS) also provided a technical assistance grant to support project preparation and to catalyze the loans.
CFPS and CFPS II were established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific.
Once operational, the plant is expected to provide over 50 gigawatt-hours of clean electricity annually to the national grid and avoid 33,200 metric tons of carbon dioxide emissions.
The project aligns with the Government of Bangladesh’s aim to reduce the country’s dependence on fossil fuels through renewable energy under Bangladesh Vision 2021.