The EIB loan will finance the conversion of gas-fired plants in Baghabari and Shagibacar to combined-cycle plants. The conversions are expected to result in efficiency improvements of around 75 per cent and an increase in generation capacity of approximately 50 per cent without using any more fuel.
The wider $1.6bn programme is being co-financed by other international financial institutions including the Asian Development Bank, the Islamic Development Bank and the Agence Française de Développement.
EIB vice-president Magdalena Alvarez said the loan “shows the bank’s strong commitment, together with that of other international financial institutions, to improving access to energy, which is essential to boost economic growth and raise the standards of living of the local population”.
“Sustainable access to the energy supply will also help avoid bottlenecks and will enable the more efficient and rational use of energy resources, thus reinforcing the positive effects in terms of climate change mitigation and adaptation.”