Bangladesh to get $400 mln World Bank loan

DHAKA - Bangladesh will get $400 million loan from the World Bank for its power sector, a senior official said on Saturday.
"The Washington based lending agency has already approved $130 million and the rest for the power sector project is now under active consideration of the board," said M. Fouzul Kabir Khan, secretary of the power division of the ministry of Power, Energy & Mineral Resources.
A bank mission last month visited Bangladesh to complete the negotiation and pledged to finance the $400 million integrated energy sector project.
"The fund from the soft wing of the bank will be used to set up a 300-megawatt (MW) capacity power plant and a transmission line to add electricity to the national grid," Fouzul told Reuters.
The project also includes laying of a pipeline to supply gas to the new plant, he said.
The fund will also be utilised to set up a 60-kilometre long gas pipeline from Bakhrabad gas field to Siddhirgonj to supply gas to the proposed power station and 11-kilometer long 230kv power transmission line from Siddhirgonj for supplying power to the capital city.
Due to shortages of gas, Bangladesh is unable to produce enough electricity to meet demand and faces a 1,500 megawatts shortfall.
Economists and business leaders have said that due to a lack of regular power supply, Bangladesh incurs up to $1 billion industrial losses yearly.