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World Bank provides $177 million for low-cost electricity in Bangladesh

Staff writer ▼ | December 29, 2015
Bangladesh signed a $177 million additional financing agreement with the International Development Association (IDA) to complete the ongoing construction of a 335 megawatt power plant at Siddhirganj, near Dhaka.
Bangladesh electricity
Energy   International Development Association
The power plant will account for 6 percent of the total electricity delivered to the national grid. IDA is the World Bank’s concessional arm that helps the world’s poorest countries.

The additional financing to the Siddhirganj Power Project will help increase clean, reliable and low-cost electricity supply in Bangladesh. In 2008, the World Bank provided $350 million 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.

The combined cycle technology allows the plant to produce higher energy with lower gas consumption. This cleaner technology reduces carbon emission. The plant will start commercial operation in 2016.

In addition to financing the construction of the power plant, the project will also help strengthen the institutional capacity of the three implementing agencies: Gas Transmission Company Limited (GTCL), Electricity Generation Company of Bangladesh (EGCB), and Power Grid Company of Bangladesh (PGCB).