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ADB to provide $200m for energy efficiency, transition in BD

Published : Wednesday, 29 November, 2023 at 12:00 AM  Count : 243

The Asian Development Bank (ADB) has announced its support for the Bangladesh government's low-carbon energy transition and efforts to reduce methane leakage.

As part of a $1.026 billion loan agreement with Bangladesh, the ADB will provide $200 million to help reduce approximately 400,000 tons of carbon dioxide emissions annually.

Additionally, the ADB will offer technical assistance amounting to $1.75 million to aid the government in implementing its low-carbon energy transition and reducing methane leakage in the gas distribution subsector.

"This project will contribute to meeting Bangladesh's climate mitigation targets for the gas distribution subsector as set out in the updated 2021 nationally determined contributions," said Edimon Ginting, ADB country director for Bangladesh.

This amount would be used to implement the "Smart Metering Energy Efficiency Improvement Project" under which 650,000 smart prepaid gas meters (SPGMs) for residential customers, will be installed in South Dhaka and Narayanganj,' according to a ADB release.

According to the project proposal, it will increase the operational efficiency of the state-owned Titas Gas Transmission and Distribution Company Limited-the country's largest gas distribution company-through transformational and modernized approaches.     

It aims to achieve saving natural gas, prevent gas wastage (methane leakage), build customer awareness on the safe and efficient use of gas, and improve the financial performance of the gas distribution company by improving revenue streams and reducing billing, collection, and monitoring costs, said Edimon Ginting while  signing the loan agreement with Md Shahriar Kader Siddiky, secretary, Economic Relations Division on Tuesday. State Minister for Power, Energy and mineral Resources Nasrul hamid witnessed the signing ceremony.

This includes promoting advanced digital technologies, such as smart meters connected with a unified metering data system and an automated web-based grievance system. It also includes preparing pre-feasibility studies on innovative clean energy solutions and assessing the viability of accessing private capital for future financing, including carbon credits.

Combined with improved customer safety awareness and promotion of safety standards for gas appliances, the project also aims to reduce gas-related accidents and ensure safe access, especially for disadvantaged groups like women and lower-income residential users.

A $1 million ADB grant and $750,000 from the Republic of Korea e-Asia fund will help in pre-feasibility studies and assessing financing options like carbon credits, the release added.

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