Govt Signs $30M Deal with WB for Power Grid Upgrade

The government has signed a $30 million agreement with the World Bank for additional financing under the "Enhancement and Strengthening of Power Transmission Network in Eastern Region Project." The agreement, valued at SDR 22.9 million (approximately $30 million), was finalized today, furthering efforts to bolster the power transmission infrastructure in Bangladesh.

The project, led by Power Grid Bangladesh, aims to ensure a more reliable electricity supply and address the growing demand for power in the regions of Cumilla, Chattagram, and Noakhali.

Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Gayle Martin, Acting Country Director of the World Bank, signed the agreement on behalf of their respective organizations, according to an ERD press release.

The initial agreement for this project, signed on April 10, 2018, under the World Bank’s Scale-Up Facility (SUF), amounted to $450.64 million (approximately EUR 376 million). However, $50 million was redirected to support Covid-19-related initiatives during the pandemic. This new $30 million financing is crucial to ensure the project’s completion and continued progress.

The loan comes with favorable terms: a 30-year repayment period, a 5-year grace period, and an interest rate of 1.25%. The service charge is set at 0.75%, and although the maximum commitment charge is 0.5%, the World Bank’s Board has waived this charge for the current year.