September 02, 2009, Dhaka: The Government of Bangladesh today signed a credit agreement worth US$ 130 million with the International Development Association (IDA), the World Bank’s concessionary arm to help to increase access to electricity through installation of affordable Solar Home Systems in rural areas.
This US$ 130 million IDA credit is provided as Additional Financing to the existing Rural Electrification and Renewable Energy Development (RERED) project, which has already connected around 600,000 consumers to the electricity grid, constructed about 8,500 km of new distribution, and provided 320,000 consumers with Solar Home Systems since 2003. Still, only 40% of the population has access to electricity in Bangladesh. Power shortages and load shedding are severe, especially in rural areas, which hurt rural population and impede economic growth and industrial development.
The additional project financing will continue support to the Government of Bangladesh in providing electricity to the remote areas, and reducing load shedding through demand side management measures.
“The conventional power grid will not be adequate to ensure access to electricity for all, especially for the people living in remote areas.” said Tahseen Sayed, Acting Country Director, World Bank Bangladesh “This additional financing would help to light up 300,000 homes through solar home systems. The rural household will have access to reliable power supply. Their children would be able to study in evening and they will be able to utilize more productive hours.”
The additional financing will provide for additional Solar Home Systems (SHS) in the remote areas and support renewable energy based mini-grid, and promote solar water pump for irrigation
The project will purchase and distribute 10 million Compact Fluorescent Lamps (CFLs) in exchange for incandescent lamps in densely populated areas. Replacing these lamps, which will be free of charge for residential consumers, is expected to reduce the peak demand by about 360 MW.
The agreement was signed at the Economic Relations Division today. Mr. Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division and Ms. Tahseen Sayed, World Bank Acting Country Director, signed on behalf of the Government of Bangladesh and the World Bank respectively. Separate agreements were signed between the World Bank and the two implementing agencies under the project, the Infrastructure Development Company Limited (IDCOL) and Rural Electrification Board (REB).
The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.
This US$ 130 million IDA credit is provided as Additional Financing to the existing Rural Electrification and Renewable Energy Development (RERED) project, which has already connected around 600,000 consumers to the electricity grid, constructed about 8,500 km of new distribution, and provided 320,000 consumers with Solar Home Systems since 2003. Still, only 40% of the population has access to electricity in Bangladesh. Power shortages and load shedding are severe, especially in rural areas, which hurt rural population and impede economic growth and industrial development.
The additional project financing will continue support to the Government of Bangladesh in providing electricity to the remote areas, and reducing load shedding through demand side management measures.
“The conventional power grid will not be adequate to ensure access to electricity for all, especially for the people living in remote areas.” said Tahseen Sayed, Acting Country Director, World Bank Bangladesh “This additional financing would help to light up 300,000 homes through solar home systems. The rural household will have access to reliable power supply. Their children would be able to study in evening and they will be able to utilize more productive hours.”
The additional financing will provide for additional Solar Home Systems (SHS) in the remote areas and support renewable energy based mini-grid, and promote solar water pump for irrigation
The project will purchase and distribute 10 million Compact Fluorescent Lamps (CFLs) in exchange for incandescent lamps in densely populated areas. Replacing these lamps, which will be free of charge for residential consumers, is expected to reduce the peak demand by about 360 MW.
The agreement was signed at the Economic Relations Division today. Mr. Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division and Ms. Tahseen Sayed, World Bank Acting Country Director, signed on behalf of the Government of Bangladesh and the World Bank respectively. Separate agreements were signed between the World Bank and the two implementing agencies under the project, the Infrastructure Development Company Limited (IDCOL) and Rural Electrification Board (REB).
The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.
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