The World Bank (WB) is likely to provide US$ 188 million worth of funds for setting up a 50-megawatt (MW) solar power plant and renewable energy development works, officials said on Wednesday.
The government in a meeting last week decided to take the financial assistance from the Washington-based lender, they also said.
When and if available, the Electricity Generation Company of Bangladesh (EGCB) will construct the 50-MW solar power plant in Feni and the Infrastructure Development Company Limited (IDCOL) will install solar home systems with the WB assistance.
Besides, the Sustainable Renewable Energy Development Authority (SREDA) will improve policies for increasing use of the alternative energy in Bangladesh.
"We sat for an inter-ministerial meeting in Dhaka last week.
The implementing agencies and the Economic Relations Division (ERD) have agreed to borrow the funds," said an ERD official.
The officials said the WB funds will help the government to fulfil its target of ensuring use of 10 per cent renewable energy by 2020.
The government has set a target to enhance renewable energy production equivalent to 10 per cent of total power generation in the country by 2020, and to 15 per cent by 2030.
The WB has assured the government of providing the funds under the proposed "Scaling up renewable energy project".
A senior IDCOL official said they will help people in the urban areas to install rooftop solar systems.
An official of the Power Division said the 50-MW solar power plant in Feni will be one of the biggest power plants, set up by a public agency.
"With the support of the WB, we have planned to set up the power station within next two years," he added.
Another ERD official said they will start negotiations with WB shortly to get the fund.
After completing the negotiations, ERD will sign a loan deal with WB to confirm the fund for renewable energy development in the country, he added.
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