The World Bank has pledged an additional $30 million to aid the development of Bangladesh’s energy sector, equivalent to Tk367.14 crore, calculated at an exchange rate of Tk122.38 per dollar.
The funding will support the "Enhancement and Strengthening of Power Transmission Network in Eastern Region" project, designed to ensure reliable electricity supply and cater to the growing demand in greater Comilla, Chattogram, and Noakhali.
The loan agreement was signed on Thursday (23 January) at the Economic Relations Division (ERD) between representatives of the Government of Bangladesh and the World Bank.
Secretary of the ERD, Shahriar Kader Siddiqui, signed on behalf of the government, while Gail Martin, the acting country director for the World Bank in Bangladesh, signed for the global financial institution.
Initially, the World Bank had committed $450.64 million under its Scale-Up Facility (SUF) to the project through an agreement signed on 10 April 2018.
However, during the COVID-19 pandemic, $50 million was redirected to pandemic-related initiatives, reducing the initial commitment to $400.64 million.
The current supplementary funding of $30 million is deemed essential for the project’s successful completion.
The loan comes with a 30-year repayment period, including a grace period of 5 years.
The interest rate is set at 1.25%, with a service charge of 0.75%.
Additionally, while the agreement permits a maximum commitment charge of 0.50% on unutilised funds, no commitment fee will be charged this fiscal year, as per the World Bank Board’s decision.
The project aims to play a pivotal role in bolstering energy infrastructure and meeting the growing electricity needs of Bangladesh’s eastern regions.
