Govt to seek extra WB fund for energy, power sectors

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FE Report
The government will seek extra fund from the World Bank in addition to one being provided under its four-year lending programme to support Bangladesh's development in different sectors like energy and power.
Official sources said that the government would request the Washington-based donor to raise its financial support by around US$500 million.
The World Bank is providing fund under its four-year Bangladesh Country Assistance Strategy (CAS), which envisages release of $2.965 billion in period between fiscal 2005-06 and 2008-09.
A senior Economic Relations Division (ERD) official told the FE: "We will request the WB at a meeting shortly for widening financial support to the Bangladesh government."
"Since different ministries, particularly the energy and power divisions, have sought more financial support from the World Bank, we have decided to request the multilateral lender formally to enhance its support in addition to the ongoing CAS," he added.

The energy and power divisions have already sought funds from the World Bank for some new development projects including gas field development and conducting seismic survey for gas exploration and setting up of two new power plants in the country. These projects were not included in the CAS of the World Bank.
The ERD official said that giving the power generation the highest priority, the present interim government directed the ERD to request the donors to widen their support to Bangladesh.
As per CAS of the global lender, it assured Bangladesh to provide $456 million against four projects in fiscal 2005-06 followed by $747 million for eight projects in fiscal 2006-07, $852.5 million for seven projects in fiscal 2007-08 and $910 million against six projects for fiscal 2008-09.
The World Bank will finance the development of the country's infrastructure, power, energy, education and health, water supply and sanitation system, port operation, good governance, operation of nationalised commercial banks and reforms in financial sector and different government organisations.
According to ERD, although the government could confirm the disbursement of $456 million in fiscal 2005-06 under the CAS, it was unable to streamline the disbursement of $747 million as earmarked for fiscal 2006-07.
"Due to delay in negotiations process with the WB for the fund disbursement against the earmarked projects in 2006-07, we have failed to streamline the disbursement of entire amount of $747 million. However, we could complete loan agreement for disbursement of about $450 million in that last fiscal," the ERD official said adding, the remaining fund might be ensured in the current fiscal.