ERD, ADB ink deal for $167m loan for gas sector

Staff Correspondent | Published: 23:10, Dec 29,2016

 
 

The Asian Development Bank will give a $167-million loan to Bangladesh to improve production efficiency at Titas Gas Field and expand transmission infrastructure.
Economic Relations Division of the finance ministry and the ADB on Thursday signed a loan agreement at NEC auditorium at Agargoan in the capital Dhaka.
ERD senior secretary Mohammad Mejbahuddin and ADB country director Kazuhiko Higuchi signed the agreement on behalf of the respective side.
The Asian Infrastructure Investment Bank is expected to co-finance the project titled the Natural Gas Infrastructure and Efficiency Improvement Project with an additional $60 million, subject to its board approval.
If approved, it will be the second project in the country to be co-financed by the ADB and the AIIB.
Under the project, seven wellhead gas compressors will be installed to increase pumping pressure and ensure steady extraction at Titas Gas Field.
The project worth $453 million will also boost gas transmission by constructing 181 kilometres of transmission pipeline from Chittagong to Bakhrabad in Comilla.
The government will provide $226 million for the project.
The project will substitute the use of other fossil fuels and reduce over 7 lakh tonnes of carbon dioxide emissions per year over the ensuing 10 years.
‘Bangladesh’s economy has grown significantly over the past decade and so has the need for energy to ensure stable supply of electricity,’ said Kazuhiko at the signing ceremony.
The project will help address growing energy needs with additional cleaner energy by increasing natural gas production, and addressing supply constraints and transmission bottlenecks, he said.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images