DHAKA, June 26 (Xinhua) -- The Asian Development Bank's (ADB) Board of Directors has approved a 500 million U.S. dollars loan to develop a state-of-the-art 800 megawatt (MW) power plant in Khulna, Bangladesh, along with associated connections to natural gas and power transmission facilities.

"In the face of rising demand for energy in a growing economy, the Rupsha power plant will be the first of its kind in Bangladesh, vastly increasing the availability of efficient and cleaner energy," ADB Energy Specialist Aziz Yusupov was quoted as saying in a statement received here Tuesday.

"By providing additional electricity supply to about 300,000 consumers, the plant will stimulate business expansion and create new job opportunities."

The total cost of the project is 1.14 billion U.S. dollars, with the Islamic Development Bank contributing 300 million U.S. dollars in cofinancing and the Bangladeshi government contributing 338.5 million U.S. dollars on top of ADB's support. The project is due to be completed by the end of June 2022.

A financing of 1.5 million U.S. dollars will also be provided from ADB's Japan Fund for Poverty Reduction, funded by the Government of Japan, to improve living standards in nearby communities.

Focusing on vulnerable households and women, activities will include increasing awareness on safe and efficient use of electricity, training on livelihood and job opportunities, and providing school laboratory facilities.