World Bank to finance Siddhirganj power project

World Bank to finance Siddhirganj power project


The government has signed a $177 million additional financing agreement with the World Bank to complete the ongoing construction of a 335 megawatt combined cycle power plant at Siddhirganj, near Dhaka.The plant that will start commercial operation in 2016 will account for 6 percent of the total electricity delivered to the national grid, the World Bank says. The additional credit from the World Bank’s concessional arm, IDA, is spread over a 38 year term, including a six year grace period, and a service charge of 0.75 percent.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.”This financing will contribute to the World Bank’s current support to the energy sector, raising it to over $1.5 billion,” said Iffath Sharif, Acting World Bank Country Director for Bangladesh.The government in the last few years has significantly increased the power generation capacity.But the demand is going up by the day.

“The Project will increase uninterrupted and low-cost power supply during the peak demand period, and thus help spur economic activities. It will reduce the cost of doing business in Bangladesh,” said Kazi Shofiqul Azam, Additional Secretary, Economic Relations Division, government of Bangladesh.Kazi Shofiqul Azam and Iffath Sharif signed the loan agreement.The combined cycle technology allows the plant to produce higher energy with lower gas consumption.This cleaner technology reduces carbon emission.


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