Negotiations with WB for energy fund starts Sept 17

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FE Report
The government will start negotiating with the World Bank (WB) on September 17 for a $355 million loan to finance an integrated energy and power sector development project in Bangladesh, an official said Friday.
"We'll sit with WB on September 16 to 17 in Dhaka to complete the negotiations for getting the fund. It will be utilised in implementing three integrated projects including setting up of a 300-megawtt (MW) power plant," a power division official said.
The government has been requesting the donor for the talks over the last few months, he said.
The Washington-based lender in early 2006 assured the government of providing $275 million fund. Later, it raised the fund to $355 million for an integrated energy sector development project including installation of the 300MW peaking power plant at Siddhirganj.
Under the integrated project, a 60-kilometre long, 30-inch diameter gas transmission line from Bakhrabad to proposed Siddhirganj power station and 11-km long 230kv power transmission line from Siddhirganj to Maniknagar for supplying power to the Dhaka city will be installed.
"Negotiation for the WB fund was to be completed in October 2007 and loan agreement in November-December of the same year. But the Bank rescheduled the negations to early April 2008. The schedule was missed again," an economic relations division (ERD) official said.
"Now we expect the $355 million fund of the global lender to be confirmed by December this year. And construction of the 300MW Siddhirganj plant might start by the first half of 2009," a power division official said.
Following the severe power crisis across the country, the donors including the WB, Asian Development Bank (ADB) and Japan pledged funds for several power generation projects in early 2006.
The country is now experiencing power supply shortfall of more than 1200MW.
The power problem has already affected the industrial growth in the country as the entrepreneurs are now reluctant to invest.
According to government's medium-term power development plan, setting up of the proposed World Bank-funded 300MW peaking power station at Siddhirgang was scheduled for early 2007 and completed by 2010.
The ADB-funded construction work of 240MW another power station at Siddhirganj started more than one and a half years ago. Besides, the government has also started implementing the ADB-funded 150MW power plant each in Sirajganj and Khulna.
The Japan government also confirmed a loan for financing installation of a 360MW power station in Haripur. The power division has also started implementation of the power generation project.