DHAKA, March 28 - The Asian Development Bank (ADB) said on Sunday it will provide a $266 million loan to meet about half the cost of a major expansion of Bangladesh's natural gas supply network in a bid to spur economic growth.
Bangladesh faces gas shortages of up to 300 million cubic feet a day. The funds will be used to build new transmission and distribution pipelines and to expand gas supply to less developed areas in the impoverished south Asian country's southwest.
Bangladesh's reserves of natural gas provide about 70 percent of its total primary energy supply and fuel 85 percent of its power generation.
Its gas transmission and distribution infrastructure have not kept pace with new investment in gas exploration and the development of new fields.
About 200,000 new households in the southwest, along with 1,400 industrial and commercial establishments, will receive gas as a result of the expanded distribution network.
Korea Eximbank will provide a loan of $45 million for the transmission expansion phase and the government of Bangladesh will give $231 million in equity and loans for a total project cost of $542 million.
The project is due for completion in March 2015.
($1=69.25 taka)
Bangladesh faces gas shortages of up to 300 million cubic feet a day. The funds will be used to build new transmission and distribution pipelines and to expand gas supply to less developed areas in the impoverished south Asian country's southwest.
Bangladesh's reserves of natural gas provide about 70 percent of its total primary energy supply and fuel 85 percent of its power generation.
Its gas transmission and distribution infrastructure have not kept pace with new investment in gas exploration and the development of new fields.
About 200,000 new households in the southwest, along with 1,400 industrial and commercial establishments, will receive gas as a result of the expanded distribution network.
Korea Eximbank will provide a loan of $45 million for the transmission expansion phase and the government of Bangladesh will give $231 million in equity and loans for a total project cost of $542 million.
The project is due for completion in March 2015.
($1=69.25 taka)
