ADB nod to $231 mn loan for Assam power plant

GUWAHATI: The Asian Development Bank (ADB) has approved a $231 million loan to construct the Lower Kopili Hydroelectric Power (LKHEP) plant in central Assam, an official statement said.

The loan is the third and largest tranche of the $300 million Assam Power Sector Investment Programme approved by ADB in 2014.

The project has so far upgraded the 70 MW Lakwa gas project and improved distribution networks in Assam.

The LKHEP plant will double the hydropower generation capacity of the Assam Power Generation Corporation Ltd (APGCL). It will harness water from the Kopili river to generate 120 MW electricity, particularly during peak demand periods.

“This project will produce clean energy and help address the growing demand for electricity in Assam. It will also help state power companies reduce their dependence on expensive electricity from fossil fuel sources,” said ADB principal energy specialist, Len George.

The project will also finance APGCL’s enterprise resource planning system and support implementation of measures to improve financial management.

“In addition to the loan, a $2 million project grant from ADB’s Japan Fund for Poverty Reduction will finance community-based disaster resilience initiatives and resource management,” the statement said.

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