World Bank Supports Bangladesh in Modernizing the Power Sector

Stocks and Financial Services Press Releases Thursday April 27, 2017 09:00
WASHINGTON--27 Apr--World Bank

WASHINGTON, April 26, 2017—The World Bank today approved $59 million in financing to help Bangladesh meet the increasing demand for electricity by improving the reliability and efficiency of the entire power system, from electricity generation to transmission.

The Power System Reliability and Efficiency Improvement Project will reduce power outages and load-shedding by about 60 percent, as well as cut electricity generation costs significantly. This will be achieved by modernizing the electricity generation processes and practices, with installation of new software and hardware as well as upgrades to the transmission system. The project will also lower greenhouse gas emissions by reducing the use of carbon-intense fuel in electricity generation.

"In the last five years, Bangladesh has almost doubled its electricity generation capacity to meet increasing demand for electricity. Yet, our 2017 Doing Business Report still ranked it 187 out of 190 economies on the Getting Electricity indicator," said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan and Nepal. "The project will help address bottlenecks and modernize the overall power system. This will reduce outages, save fuel in power generation, and help bring affordable and reliable electricity to households and businesses."

According to the 2013 World Bank Enterprise Survey, businesses in Bangladesh face power outages for 840 hours per year on average, with an output loss equivalent to 3 percent of GDP. While almost all urban areas have electricity, only 70 percent of rural households have access to it. As the government aims to double electricity generation capacity again in the next five years, it will be important to expand the transmission network and optimize the national power system operation to accommodate the increased power flows. The project will help construct and rehabilitate a 40-km transmission line and remove bottlenecks in other important lines.

"In Bangladesh, the supply of power has not been able to keep pace with the rapid growth of demand, resulting in frequent outages and load shedding, said M. Iqbal, World Bank Task Team Leader. "To increase reliability, efficiency, and affordability, the project will provide, in addition to infrastructure investments, the necessary tools and know-how to modernize the power system dispatch in Bangladesh. This will enable the National Load Dispatch Center to operate the generation and transmission facilities at an optimal cost."

The credit by the World Bank's International Development Association's scale-up facility will have a 30-year term, including a nine-year grace period.

The World Bank was among the first development partners to support Bangladesh after independence. Since then, the World Bank has committed nearly $26 billion grants and interest-free credits to the country. In recent years, Bangladesh has been the largest recipient of the World Bank's interest-free credits.


Latest Press Release

THE FINLAB LAUNCHES THAILANDS FIRST BUSINESS ACCELERATOR FOR SMEs

The FinLab announced the launch of its Smart Business Transformation Programme to help Thailand-based small- and medium-sized enterprises (SMEs) transform their businesses through digital solutions. The programme is supported by United Overseas Bank...

Photo Release: KBank teams up with PTTOR to offer first KBank Service at Cafe Amazon, PTT Service Station (Ekamai-Ramintra)

Ms. Jiraporn Khaosawas (1st from left), Chief Executive Officer and Managing Director of PTT Oil and Retail Business PCL. (PTTOR), and Mr. Patchara Samalapa, KBank President, recently introduced "KBank Service" or deposit service at Cafe Amazon, PTT...

SHREIT announces distribution for unitholders of 0.2561 baht per unit All three existing hotels continue to generate excellent revenues in past three months Results from first 10 months of 2018 yield total distribution of 0.5997 baht per unit

Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) on 19 November 2018 announced distribution payment for the past four months (1 August - 31 October 2018) to unitholders at the rate of 0.2561 baht per unit. And...

KTC joins forces with Bangkok Airways Airline in launching seven brand-new KTC Bangkok Airways credit cards beyond the power of boutique, all-in-one cards.

KTC jointly with Bangkok Airways, celebrate their 13th partnership anniversary and Bangkok Airways' 50th anniversary, transforming seven KTC – Bangkok Airways credit cards to cover all card alliance networks including MasterCard, VISA and JCB,...

SEC Dates CAZ Filing Plans to Sell 80 Million of IPO Shares To Increase Working Capital and Serve More Future Works

The Securities and Exchange Commission Thailand (SEC) dated the filing of CAZ (Thailand) Public Company Limited or "CAZ" for listing in the Market for Alternative Investment (MAI). The Company plans to sell 80 million of initial public offering (IPO)...

Related Topics