The Asian Development Bank (ADB) signed an agreement with the Bangladesh government on Wednesday to provide $300 million in loans for projects to address power shortages that are undermining the economy and slowing poverty reduction efforts. The loan for the power infrastructure projects will help meet Bangladesh's urgent need for more energy-efficient generating plants and greater use of renewable power sources, an ADB statement.
Aging thermal plants, inadequate natural gas supplies and lack of diverse power sources add to chronic electricity shortages, estimated at more than 1,200 megawatts (MW) a day in 2011, constraining growth and discouraging investors. Only 49 percent of people have access to electricity in a country where a third of the population live in extreme poverty.
"Greater access to clean, reliable power will bring multiple benefits such as increased economic activity and new opportunities in agriculture, manufacturing and other businesses, which will benefit the poor, including women," said the ADB's Bangladesh director, Thevakumar Kandiah.