ADB approved 300 million US dollar loan for Assam's power sector
The Asian Development Bank (ADB) on 3 July 2014 approved 300 million US dollars loan to Assam to eliminate power inefficiencies in the State
The Asian Development Bank (ADB) on 3 July 2014 approved 300 million US dollars loan to Assam. The loan will help Assam in its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment.
The funds will be disbursed to the State in three tranches with the project set to be completed by the end of 2023. The first installment will be of 50 million dollars for the replacement of ageing gas turbines at the Lakwa Gas Power Plant in northern Assam. The second tranche will also be for 50 million US dollar and the third for 200 million US dollar.
The new loan will continue past efforts to build up the capacity of power companies and regulatory agencies, and to further cut distribution losses
The loan is a part of a broader 10-year, 3.5 billion US dollars state investment program. It will fund generation and distribution upgrades, including the construction of a 120-megawatt hydropower plant. Lower Kopili run-of-the-river hydropower plant in central Assam will help Assam avoid over 530000 tons per annum of carbon dioxide emissions that would otherwise be produced by fossil fuel-driven generation.
The loan will also finance new energy efficient generating equipment at existing plants, new distribution lines and substations. It will also provide financial management training and other support for staff of the Assam Power Generation Corporation and Assam Power Distribution Company.
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