World Bank approves $177m for low-cost power in Bangladesh

১৭ ই নভেম্বর, ২০১৫ বিকাল ৩:৫১

The World Bank has approved an additional $177 million fund, aiming to increase reliable and low-cost electricity supply in Bangladesh. The additional financing will help the construction of a 335-megawatt combined cycle power plant at Siddhirganj, near Dhaka, the Washington-based lender. The credit will come from the International Development Association, the World Bank's concessional lending arm.

The terms are based on 38-year maturity with a six-year grace period and a service charge of 0.75 percent. The combined cycle technology allows the plant to produce higher energy with lower gas consumption and it reduces carbon emissions while ensuring higher thermal efficiency. The plant will deliver at least 2.49 billion kWh of power annually, which accounts for 6 percent of the total electricity delivered to the national grid. Despite increased power generation capacity, Bangladesh still faces significant outages during the peak demand hours. Inadequate power supply is affecting families, undermining competitiveness and hindering growth. This additional financing will add new power generation capacity for Bangladesh and increase efficient use of its scarce domestic gas supplies. In 2008, the World Bank provided $350 million to construct a 300-megawatt gas turbine power plant in Siddhirganj. The additional financing will fill the financing gap for the construction of the power plant, which is expected to start commercial operation in 2016.

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