3-yr $360m IDB fund for country's power, energy, agriculture sectors
Friday, 26 September 2008
FHM Humayan Kabir
Jeddah-based donor Islamic Development Bank (IDB) has framed a three-year programme up to 2011 for Bangladesh targeting nearly US$360 million aid disbursement giving top priority to power, energy and agriculture sectors, officials said Thursday.
An IDB mission from its headquarters held discussion with the government agencies recently for preparing the country programme for the years 2009-2011. It also signed a memorandum of understanding with the government.
"We sought highest possible amounts for development of power, energy and agriculture sectors in the next three years. The Bank is expected to provide over $270 million fund for those sectors," a senior official of economic relations division (ERD) told the FE.
He said the IDB in the first year of its country programme, has offered a fund of $90m for setting up a 150-megawatt (MW) power plant in the costal district of Bhola.
The setting up of the power plant to be built by the Power Development Board had been hanging in balance over the last several years due to absence of fund confirmation.
"Besides, over $55 million will be given for the country's agriculture sector for quality seed production, preservation and distribution to the farmers and land irrigation aiming to ensure food security," the official of the government's foreign fund mobiliser -- ERD -- said.
The Jeddah-based lending agency will also offer $105 million in the second year (2010) of its Bangladesh programme to enhance the oil refining capacity of the country's lone refinery, the Eastern Refinery Limited (ERL).
Apart from its earmarked $360 million assistance in 2009-2011 period, the Bank also provides over $1.0 billion credit to the Bangladesh Petroleum Corporation (BPC) per year for importing petroleum from different countries.
Under an arrangement with the IDB, since 1997 the government has been getting financial support from it for importing oil.
Bangladesh spent nearly $3.0 billion in last fiscal for importing about 3.7 million tonnes of crude and refined oil to meet local demands, which was nearly $1.0 billion higher than that in the previous fiscal.
The oil payment cost went up due to soaring oil price in the international market, which jumped to $147 in July this year.
An energy division official said if the IDB provides fund for capacity building of the ERL, the country would be able to save about $300 million a year in petroleum import payment.
Currently, the crude oil refining capacity of the ERL is 1.30 million tonnes per year, which could be increased to 3.0 million tonnes after its capacity expansion, the official said.
In the 2009-2011 programme, the Jeddah-based donor agency had also earmarked a good amount of money for health sector development in the country, under which vaccine and medical equipment would be procured for government hospitals.
The multilateral donor agency has also offered some funds for rehabilitating agriculture, infrastructure and water supply in the cyclone-Sidr affected areas and for improving education in the country.
Jeddah-based donor Islamic Development Bank (IDB) has framed a three-year programme up to 2011 for Bangladesh targeting nearly US$360 million aid disbursement giving top priority to power, energy and agriculture sectors, officials said Thursday.
An IDB mission from its headquarters held discussion with the government agencies recently for preparing the country programme for the years 2009-2011. It also signed a memorandum of understanding with the government.
"We sought highest possible amounts for development of power, energy and agriculture sectors in the next three years. The Bank is expected to provide over $270 million fund for those sectors," a senior official of economic relations division (ERD) told the FE.
He said the IDB in the first year of its country programme, has offered a fund of $90m for setting up a 150-megawatt (MW) power plant in the costal district of Bhola.
The setting up of the power plant to be built by the Power Development Board had been hanging in balance over the last several years due to absence of fund confirmation.
"Besides, over $55 million will be given for the country's agriculture sector for quality seed production, preservation and distribution to the farmers and land irrigation aiming to ensure food security," the official of the government's foreign fund mobiliser -- ERD -- said.
The Jeddah-based lending agency will also offer $105 million in the second year (2010) of its Bangladesh programme to enhance the oil refining capacity of the country's lone refinery, the Eastern Refinery Limited (ERL).
Apart from its earmarked $360 million assistance in 2009-2011 period, the Bank also provides over $1.0 billion credit to the Bangladesh Petroleum Corporation (BPC) per year for importing petroleum from different countries.
Under an arrangement with the IDB, since 1997 the government has been getting financial support from it for importing oil.
Bangladesh spent nearly $3.0 billion in last fiscal for importing about 3.7 million tonnes of crude and refined oil to meet local demands, which was nearly $1.0 billion higher than that in the previous fiscal.
The oil payment cost went up due to soaring oil price in the international market, which jumped to $147 in July this year.
An energy division official said if the IDB provides fund for capacity building of the ERL, the country would be able to save about $300 million a year in petroleum import payment.
Currently, the crude oil refining capacity of the ERL is 1.30 million tonnes per year, which could be increased to 3.0 million tonnes after its capacity expansion, the official said.
In the 2009-2011 programme, the Jeddah-based donor agency had also earmarked a good amount of money for health sector development in the country, under which vaccine and medical equipment would be procured for government hospitals.
The multilateral donor agency has also offered some funds for rehabilitating agriculture, infrastructure and water supply in the cyclone-Sidr affected areas and for improving education in the country.