$480m IDA credits for power, food support
Friday, 14 November 2008
Bangladesh will get US$ 480 million credit from the International Development Association (IDA), a soft window of the World Bank, under two agreements signed in the city Thursday, reports UNB.
The fund will be utilised to increase power supply from the Siddhirganj plant and to support food crisis development.
Muhammad Mesabahuddin of the Economic Relations Division and Vinaya Swaroop, Acting Country Director of the World Bank, penned the agreements.
US$ 350 million will be provided to the Siddhirganj Peaking Power Project for increasing reliable power supply. It is the first integrated gas-to-power project in the country. It will contribute 300MW of generation capacity to help address the country's shortage of power.
A 60km natural gas pipeline from Bakhrabad to Siddhirganj will be laid under the project to improve reliability of gas supply to the Siddhirganj power plant. An 11km power transmission line will be constructed to reach the consumers. Siddhirganj Peaking Power Plant is expected to go into operation in 2011.
The rest of the credit, that is, US$ 130 million is to support for Food Crisis Development Support Credit Project. It relates to the global food price inflation and related spending including social safety net programmes.
The US$130 million support in Food Crisis Development Support Credit Project will benefit the poor families affected by the high food prices. The food price inflation has caused enormous hardship for the poor families causing many of them to cut on their food intake while others have cut back education and other expenditure for their children.
According to a World Bank projection, the food price shock has increased Bangladesh's poverty rate by around 3 percentage points. The project will help the government mitigate the impact of food price increases.
The credits bearing 0.75 per cent service charge will mature in 40 years with a 10-year grace period.
The fund will be utilised to increase power supply from the Siddhirganj plant and to support food crisis development.
Muhammad Mesabahuddin of the Economic Relations Division and Vinaya Swaroop, Acting Country Director of the World Bank, penned the agreements.
US$ 350 million will be provided to the Siddhirganj Peaking Power Project for increasing reliable power supply. It is the first integrated gas-to-power project in the country. It will contribute 300MW of generation capacity to help address the country's shortage of power.
A 60km natural gas pipeline from Bakhrabad to Siddhirganj will be laid under the project to improve reliability of gas supply to the Siddhirganj power plant. An 11km power transmission line will be constructed to reach the consumers. Siddhirganj Peaking Power Plant is expected to go into operation in 2011.
The rest of the credit, that is, US$ 130 million is to support for Food Crisis Development Support Credit Project. It relates to the global food price inflation and related spending including social safety net programmes.
The US$130 million support in Food Crisis Development Support Credit Project will benefit the poor families affected by the high food prices. The food price inflation has caused enormous hardship for the poor families causing many of them to cut on their food intake while others have cut back education and other expenditure for their children.
According to a World Bank projection, the food price shock has increased Bangladesh's poverty rate by around 3 percentage points. The project will help the government mitigate the impact of food price increases.
The credits bearing 0.75 per cent service charge will mature in 40 years with a 10-year grace period.