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

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

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

The project will build and operate a 20-megawatt (MW) grid-connected solar photovoltaic power plant-one of the initial private sector utility-scale solar facilities in the country to secure support from international financiers.

The solar power plant will generate 37.9 gigawatt-hours of electricity annually and avoid 18,344 tons of carbon dioxide emissions annually.

ADB Director General for Private Sector Operations Suzanne Gaboury said ADB's financing aims to drive progress and advance sustainable energy solutions in Bangladesh.

The long-term financing will help promote private sector involvement in developing renewable energy in the country, while addressing the critical capital needs of renewable projects," she said.

She also mentioned that ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh's renewable energy sector, to advance sustainable solutions.

Renewable energy comprises only 4.5% of Bangladesh's total power capacity.

JPL Managing Director Nuher Latif Khan said that 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.

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

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment 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 care, education, and communication services to ADB's developing member countries.