The Asian Development Bank (ADB) is considering providing several hundred million dollars in policy-based lending to support Bangladesh’s ambitious rooftop solar program and broader renewable energy reforms, officials said.
An ADB team led by Sujata Gupta, Director of the bank’s South Asia Energy Team, discussed the proposed support with officials from the Finance Division, Power Division, Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh Energy Regulatory Commission (BERC) and Bangladesh Power Development Board (BPDB) during a recent three-day visit.
The Power Division had earlier sought ADB financing to accelerate renewable energy development, reduce dependence on fossil fuels, ease power-sector subsidies and improve financial sustainability.
The Finance Division subsequently asked the Economic Relations Division (ERD) to pursue a proposed $2.0 billion loan to support rooftop solar expansion.
According to officials, the ADB team discussed policy and regulatory reforms needed to attract private investment, integrate renewable energy into the national grid and strengthen the financial sustainability of the power sector.
The bank is reportedly considering bringing forward $100 million from its existing financing pipeline and adding further funds.
