ADB approves $231 million loan for hydropower project in Assam
The Asian Development Bank (ADB) has approved a $231 million loan to develop the Lower Kopili Hydroelectric Power (LKHEP) project in Assam.
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 the state
The Lower Kopili Hydroelectric Power facility will utilize water from the Kopili River to produce around 120 MW of electricity, particularly during peak demand periods. The project will double the hydropower generation capacity of Assam Power Generation Corporation Limited (APGCL), ADB said in an official statement.
The programme will also provide funding for APGCL’s enterprise resource planning system and support implementing measures to enhance its financial management. Under the plan, steps would be taken to reduce acidity in the Kopili River. It will also plan for special measures to mitigate acidity concerns in the Kopili River on the project.
Community-based disaster resilience initiatives and resource management will also be financed through project funding worth $2 million from ADB’s Japan Fund for Poverty Reduction.
“This project will produce clean energy and help address the growing demand for electricity in the state of Assam. It will also help state power companies reduce their dependence on expensive electricity from fossil fuel sources. Providing reliable power supply will promote economic growth, create employment opportunities, and attract investments,” ADB’s Principal Energy Specialist Len George said.
