World Bank signs funding package for 310 MW of renewables in Bangladesh
The 28-MWp solar park in Technaf, Bangladesh. Image by: Proinso (www.proinso.net).
The World Bank said on Thursday it will provide USD 185 million (EUR 167.6m) in financing to the government of Bangladesh that will support the deployment of 310 MW of renewables capacity in the South Asian country.
The financing agreement was signed as part of the Bangladesh Scaling-up Renewable Energy Project and 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%. In addition to that, a USD-26.38-million loan, with a term of 40 years and a 10-year grace period, 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).
The financing will support the construction of a 50-MW grid-tied solar park in Feni district, which will be the country’s first large-scale facility of its kind. The project will be undertaken by the Electricity Generation Company of Bangladesh (EGCB). Funds will also go to help the Infrastructure Development Corporation Limited (IDCOL) manage a renewable energy financing facility for utility-scale and rooftop solar projects, while it will also facilitate the Sustainable and Renewable Energy Development Authority (SREDA) in identifying sites for large-scale projects and promoting solar net metering.
According to the World Bank’s statement, the Bangladesh Scaling-up Renewable Energy Project will unlock up to USD 212 million in investment from the private sector, commercial banks, and other sources.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.