Asian Development Bank (ADB) has signed a $200 million financing package with Reliance Bangladesh LNG and Power Limited (RBLPL) to build and operate a 718MW gas-fired power plant in Bangladesh.

The financing agreement 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 Chief Executive Officer of RBLPL, Ranjan Lohar, ADB said in a press release today.

The project will ease ongoing energy shortages and drive further private sector investments in the country’s power sector, it said.

The assistance comprises a $100 million loan from ADB and a further $100 million loan from Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by ADB, the press release said.

The project is co-financed by the Japan Bank for International Cooperation as well as four commercial banks, with insurance for the commercial banks provided by Nippon Export and Investment Insurance, it said.

“This highly energy-efficient project will help address a widening gap between the demand and supply of electricity in Bangladesh, which is critical for continued industrial and economic growth,” said Chakraborty.

RBLPL Chief Executive Officer Ranjan Lohar said, “RBLPL is privileged to have the support of international development banks including ADB for this power plant project in Bangladesh. Through the project, RBLPL aims to contribute to the country’s robust economic growth.”