The World Bank (WB) will provide US$ 55 million in loans to help Bangladesh expand renewable energy uses in rural areas.
The global lender signed an agreement with the government on Wednesday at the Economic Relations Division (ERD) in Dhaka.
The bank's country director for Bangladesh, Bhutan and Nepal Qimiao Fan and the ERD secretary Kazi Shofiqul Azam signed the agreement on behalf of their respective sides, the WB said in a statement.
The additional financing will be available for the Second Rural Electrification and Renewable Energy Development (RERED II) Project.
The project aims to install some 1,000 solar irrigation pumps, 30 solar mini-grids, and about four million improved cookstoves in rural areas.
Since 2003, the World Bank has been helping Bangladesh expand solar-powered electricity in remote and rural areas.
Now, Bangladesh has one of the world's largest domestic solar power programmes, covering 14 per cent of the population.
"Since 2003, the World Bank has been helping Bangladesh to improve access to electricity through renewable energy," Mr Fan said.
"Following a successful demand-driven public-private partnership programme, Bangladesh installed 4.2 million solar home systems."
This additional financing will help scale up the use of clean and renewable energy such as solar irrigation pumps and solar mini-grids.
This which will help reduce poverty, improve the environment, create jobs, and open up new opportunities for rural people," said Mr Fan.
With an additional $ 20 million support from the Green Climate Fund, the project will scale up the use of improved cookstoves, said the bank.
Improved cookstoves emit 90 per cent less carbon monoxide and use half as much firewood as a traditional version.
These interventions will reduce greenhouse gas emissions and indoor air pollution.
"The government of Bangladesh targets a 100 per cent coverage of improved cookstove by 2030," said Mr Azam.
"The additional financing will be important to ensure that every rural household has an improved cookstove," he added.
The credit is from the International Development Association, the World Bank's concessional lending arm.
IDA provides grants or zero-interest loans.
Its loans have a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent, according to the bank.
© 2024 - All Rights with The Financial Express
