World Bank signs $185 million loan agreement for renewable energy generation with Bangladesh

• 5 years ago (2019-08-30)
• David Flin

Asia 892 Solar 273

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The Bangladesh Government has signed a $185 million financing agreement with the World Bank to add about 310 MW renewable energy generation capacity. The Scaling-Up Renewable Energy Project will focus on utility scale solar PV to expand new markets in renewable generation in the country.

The project will establish the country’s first large-scale 50MW grid-tied solar PV generation plant in Feni district, implemented by the Electricity Generating Company of Bangladesh (EGCB).

To fill the gap in the long-term domestic financing market for renewable energy, the project will also support the Infrastructure Development Corporation Limited (IDCOL) to manage a Renewable Energy Financing Facility for both rooftop- and utility-scale PV. It will also help the Sustainable and Renewable Energy Development Authority (SREDA) identify sites for large-scale projects and promote new net metering policy for rooftop PV.

The project will aim to raise up to $212 million in financing from private sector commercial banks and other sources.

The credit from the World Bank’s International Development Association (IDA) has a 30-year term, including a five-year grace period, and an interest rate of 1.25 per cent with a service charge of 0.75 per cent.