World Bank okays USD 185m in financing for Bangladesh renewables
The 28-MWp solar park in Technaf, Bangladesh. Image by: Proinso (www.proinso.net).
The World Bank on Friday approved USD 185 million (EUR 163.1m) in financing to support the addition of 310 MW of renewable power generation capacity in Bangladesh.
The package for the Bangladesh Scaling-up Renewable Energy Project includes a loan of USD 156 million from the International Development Association (IDA) with a term of 30 years, including a five-year grace period, and an interest rate of 1.25% with a service charge of 0.75%. In addition to that, a USD-26.38-million loan and a USD-2.87-million grant will be extended from the Strategic Climate Fund (SCF) of the World Bank’s Climate Investment Funds (CIFs).
Details on the planned use of the financing are available in the table, as described in the project appraisal document in February.
World Bank financing
Feni Utility-Scale Solar PV
USD 74.15m from IDA
USD 15.02m from Bangladesh Govt and EGCB
Renewable Energy Financing Facility (REFF)
USD 81.85m from IDA, USD 26.38m CIF-SREP loan
USD 212 million
USD 2.87m CIF-SREP grant
USD 0.77m from Bangladesh Govt
The REFF will be hosted and managed by the Infrastructure Development Company Ltd (IDCOL) and will provide financing for utility-scale renewable energy projects and rooftop solar projects. The facility can support a total of 260 MW of capacity.