World Bank provides additional 177 mln USD financing to increase electricity supply in Bangladesh

The World Bank has approved an additional 177 million U.S. dollars financing with the overall aim to increase reliable, low-cost electricity supply in Bangladesh.

According to a statement of the Washington-based lender received here Saturday, the additional financing will enable the completion of construction of a 335-megawatt combined cycle power plant at Siddhirganj, near Dhaka.

The combined cycle technology allows the plant to produce higher energy with lower gas consumption, it said.

According to the statement, this cleaner technology reduces carbon emission while ensuring higher thermal efficiency.

The plant will deliver at least 2.49 billion kwh annually, which accounts for 6 percent of the total electricity delivered to the national grid, it said.

"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," said Martin Rama, acting World Bank country director for Bangladesh.

"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 U.S. dollars to construct a 300 megawatt gas turbine power plant in Siddhirganj.

In the face of increasing power demand and gas shortages, the government decided to convert the peaking power plant to an energy-efficient 335 megawatt combined cycle power plant.

The additional financing will fill the financing gap for constructing the power plant, said the World Bank statement and added the plant is expected to start commercial operation in 2016. Endit