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ADB approves credit to boost gas supply
24 August 2010: The Asian Development Bank (ADB) is extending loans totaling $266 million (approx Rs 1,236.9 crore) help to Bangladesh to address natural gas supply constraints.
The funds will be used to build new gas transmission and distribution pipelines to meet the growing demand for the utility with a focus to cover less developed areas in the southwest region of the country. The project will install compressors and metering systems to boost reliability, improve safety, and strengthen the management of gas supply and demand.
An investment program to promote energy-efficient gas use will be drawn up, and training and support will be given to sector agencies. Bangladesh's vast reserves of natural gas provide around 70 percent of its total primary energy supply and fuel 85 percent of its power generation.
As part of this, Sundarban Gas Company, newly formed distribution affiliate of state-owned Petrobangla, will enter into contracts with private firms for the operation, maintenance, metering and billing of gas supplied to consumers in the southwest from 2012.
Source: Bangaldeshinfo