Negotiations conclude on $350m WB loan for Siddhirganj Power Project
Friday, 19 September 2008
FE Report
The Bangladesh government has successfully concluded negotiations with the World Bank (WB) for a loan of US$ 350 million (35 crore) to finance the Siddhirganj Peaking Power Project (SPPP).
The proposed project will be Bangladesh's first integrated gas-to-power project and will contribute 300 megawatt (MW) of power generation capacity to help address the country's shortage of power.
Dr M. Fouzul Kabir Khan, secretary of the Power Division of the Ministry of Power, Energy and Mineral Resources, and Alan F Townsend, senior energy specialist of WB, led the government and the IDA delegations respectively at the negotiation concluded Wednesday.
"For achieving the middle income country status by 2020, Bangladesh must meet the rapidly growing demand for power. We are happy to support the government to increase power supply," said Zahid Hussain, WB's acting country director.
"The Siddhirganj project will be an important part of the solution leading to sustainable provision of energy services and will help Bangladesh continue to expand the poor's access to electricity," he said.
The SPPP will increase the power supply during the period of peak demand in Bangladesh. The project would begin operation in 2011, following the construction period.
The project includes three linked infrastructure components and will help the country make efficient use of scarce natural gas resource while reducing power outages which have become a huge burden to Bangladeshi households and businesses.
"The project re-affirms our support to development of the energy sector, and complements projects in rural electrification, renewable energy, private power generation, and sector reform," said Alan Townsend, Sr. Energy Specialist and Task Leader for the Siddhirganj project.
The project will construct state-of-the-art 300 MW gas turbine power plant at Siddhirganj. It will also build a 60 km long natural gas pipeline to link the main natural gas transmission network to the Siddhirganj site and an 11-km long electricity transmission line so that power from the plant can be delivered to the distribution network.
The project also aims to strengthen the three implementing agencies: Gas Transmission Company Limited (GTCL), Electricity Generation Company of Bangladesh (EGCB), and Power Grid Company of Bangladesh (PGCB).
The credit is scheduled for WB Board consideration and approval on October 30 next.
The credits from the International Development Association (IDA), the WB's concessionary arm, carry a service charge of 0.75 per cent.
The Bangladesh government has successfully concluded negotiations with the World Bank (WB) for a loan of US$ 350 million (35 crore) to finance the Siddhirganj Peaking Power Project (SPPP).
The proposed project will be Bangladesh's first integrated gas-to-power project and will contribute 300 megawatt (MW) of power generation capacity to help address the country's shortage of power.
Dr M. Fouzul Kabir Khan, secretary of the Power Division of the Ministry of Power, Energy and Mineral Resources, and Alan F Townsend, senior energy specialist of WB, led the government and the IDA delegations respectively at the negotiation concluded Wednesday.
"For achieving the middle income country status by 2020, Bangladesh must meet the rapidly growing demand for power. We are happy to support the government to increase power supply," said Zahid Hussain, WB's acting country director.
"The Siddhirganj project will be an important part of the solution leading to sustainable provision of energy services and will help Bangladesh continue to expand the poor's access to electricity," he said.
The SPPP will increase the power supply during the period of peak demand in Bangladesh. The project would begin operation in 2011, following the construction period.
The project includes three linked infrastructure components and will help the country make efficient use of scarce natural gas resource while reducing power outages which have become a huge burden to Bangladeshi households and businesses.
"The project re-affirms our support to development of the energy sector, and complements projects in rural electrification, renewable energy, private power generation, and sector reform," said Alan Townsend, Sr. Energy Specialist and Task Leader for the Siddhirganj project.
The project will construct state-of-the-art 300 MW gas turbine power plant at Siddhirganj. It will also build a 60 km long natural gas pipeline to link the main natural gas transmission network to the Siddhirganj site and an 11-km long electricity transmission line so that power from the plant can be delivered to the distribution network.
The project also aims to strengthen the three implementing agencies: Gas Transmission Company Limited (GTCL), Electricity Generation Company of Bangladesh (EGCB), and Power Grid Company of Bangladesh (PGCB).
The credit is scheduled for WB Board consideration and approval on October 30 next.
The credits from the International Development Association (IDA), the WB's concessionary arm, carry a service charge of 0.75 per cent.