The World Bank said on Saturday it will loan Bangladesh $130 million to install solar energy panels to power 300,000 households."The World Bank today approved a $130 million credit to Bangladesh, designed to increase access to electricity through installation of affordable solar home systems in rural areas," the statement said.
Only around 40 percent of Bangladeshis have access to electricity. Power shortages are severe, especially in rural areas.
In addition, population growth, increased industrialization, additional connections, and rise in the use of modern, electrical appliances have boosted demand for electricity, currently growing at a rate of over 500 megawatts (MW) a year.
A part of the financing will also be used to purchase and install about 10 million energy efficient compact fluorescent lamps in densely populated areas, replacing an equivalent number of incandescent lamps.
The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period and it carries a service charge of 0.75 percent.
Bangladesh will also get $77 million worth of financial assistance from the German government for the economic and energy development as well for the social sector development, a senior official of the Bangladesh's finance ministry said on Saturday.
About $56 million dollars of the money is to go to the promotion of energy efficiency, good governance and health financing, he said.
The rest $21 million is to go for the legal and social empowerment of women, prison reforms, local government strengthening, rural infrastructure development and biodiversity protection.
Together with contributions to the European Union and a number of other organizations, Germany's overall support for Bangladesh now exceeds $6 billion, the official said.
SOURCE : REUTERS
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