BSS-40 Deal for $185m assistance for renewable energy Thursday





Deal for $185m assistance for renewable energy Thursday

DHAKA, Aug 28, 2019 (BSS) – The World Bank will provide $185 million to
Bangladesh to add up to 310 Megawatt (MW) in renewable energy generation
capacity and mobilize private sector participation to meet the growing demand
for electricity in the country.

“The Economic Relations Division (ERD) Secretary Monowar Ahmed and World
Bank Acting Country Director for Bangladesh and Bhutan Dandan Chen will sign
the loan agreement for the “Bangladesh Scaling-up Renewable Energy Project”
on behalf of their respective sides tomorrow (Thursday) at the NEC-2
Conference Room in the city’s Sher-e-Bangla Nagar,” said an ERD official.

The official told BSS that the $185 million credit also includes a $26.38
million loan and a $2.87 million grant from the Strategic Climate Fund (SCF)
of the World Bank’s Climate Investment Funds (CIFs).

The credit from the World Bank’s International Development Association
(IDA), which provides concessional financing, has a 30-year term, including a
five-year grace period, and an interest rate of 1.25 percent with a service
charge of 0.75 percent.

The SCF loan is on Scaling-up Renewable Energy Programme (SREP) Loan terms
and has a maturity of 40 years, including a grace period of 10 years.

The ERD official said the Scaling-up Renewable Energy Project will
increase installed capacity of renewable through piloting and expanding
investments in key market segments.

It will build the first 50 MW phase of a large scale solar panel energy
park in the Feni district, which will be implemented by the Electricity
Generation Company of Bangladesh (EGCB).

Currently, the share of the total installed renewable energy in grid supply
is only 1.5 percent and has significant potential for scaling up. The project
will help provide better access to cleaner electricity as well as air by
avoiding burning fossil fuels.

It will help cut emissions by 377,000 tonnes of carbon dioxide equivalent
a year.

The project will help mobilize up to $212 million from the private sector,
commercial banks and other sources of financing and establish a dedicated
Renewable Energy Financing Facility to provide credit to developers of both
rooftop solar photovoltaics (PV) and large-scale solar PV projects.

The project will support the Infrastructure Development Company Limited
(IDCOL) with development of the Financing Facility and provide resources to
the Sustainable and Renewable Energy Development Authority (SREDA) to build
market capacity and develop a pipeline of renewable energy projects.

World Bank Team Leader for the Scaling-up Renewable Energy Project Jari
Vayrynen said the power sector in Bangladesh has grown rapidly with maximum
generation capacity increased from a little over 4,000 MW in 2009 to more
than 20,000 MW in 2018.

BSS/SPL/GM/SSS/1847 hrs