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

As the sole mandated lead arranger, ADB arranged, structured and syndicated the financing package for MSEL, which is owned by Bangladesh-based energy company Joules Power Limited (JPL).

It includes a $15.5 million loan from the ADB and an $8.8 million loan from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), administered by the ADB, an ADB press release said.

The project will build and operate a 20 megawatt (MW) grid-connected solar photovoltaic plant, one of the first large-scale private sector solar installations in the country to gain support from international financiers.

The solar plant will produce 37.9 gigawatt hours of electricity per year and avoid 18,344 tonnes of carbon dioxide emissions per year.

“The ADB financing aims to drive progress and promote sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector participation in renewable energy development in the country, while meeting the critical capital needs of renewable projects,” said AfDB Managing Director for Private Sector Operations Suzanne Gaboury .

“The ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in the renewable energy sector in Bangladesh, to advance sustainable solutions,” added Suzanne.

Renewable energy accounts for only 4.5% of Bangladesh’s total electricity capacity.

“We are delighted to secure financing from the ADB for our second solar project in the country,” said Nuher Latif Khan, Managing Director of JPL.

“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,” added Latif .

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

LEAP 2 is a fund managed by the ADB with a commitment of $1.5 billion from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency and provide affordable health, education and communications services to ADB developing member countries.

The ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty.

Created in 1966, it belongs to 69 members, including 49 from the region.