WB-administered GPOBA, IDCOL help low-income households gain access to electricity
Friday, 14 May 2010
The World Bank (WB), acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), has approved two grants totaling US$8.3 million to subsidize part of the costs for installation of Solar Home Systems (SHS) and renewable energy mini-grids for poor households in rural Bangladesh, reprts UNB.
More than 140,000 households (or about 700,000 people) and 5,000 small to medium enterprises like timber mills, poultry farms and irrigation pumps in remote rural areas of Bangladesh, are expected to benefit from access to affordable electricity through the SHS and mini-grid projects, says a WB press release.
The GPOBA grants will complement the additional US$130 million IDA credit approved in 2009 for the Bangladesh Rural Electrification and Renewable Energy (RERED) project.
The RERED project has already installed about 500,000 Solar Home Systems (SHS) in remote rural areas of Bangladesh and is considered to be one of the most successful SHS programs in the world.
"The GPOBA projects will support the Government of Bangladesh's goal to ensure that the entire country has access to electricity by 2021. 80% of Bangladesh's population live in rural areas and are also the group most affected by a lack of sufficient electricity generation. These projects will help 140,000 more households gain access to affordable electricity," WB acting country director Zahid Hussain said.
The approved GPOBA grants will be used to subsidize the cost of SHS or mini-grid installations for poor households. The Infrastructure Development Company Limited (IDCOL) will act as manager for both schemes.
"Our mission at IDCOL is to encourage private sector investment in energy and infrastructure projects," said IDCOL CEO Islam Sharif.
More than 140,000 households (or about 700,000 people) and 5,000 small to medium enterprises like timber mills, poultry farms and irrigation pumps in remote rural areas of Bangladesh, are expected to benefit from access to affordable electricity through the SHS and mini-grid projects, says a WB press release.
The GPOBA grants will complement the additional US$130 million IDA credit approved in 2009 for the Bangladesh Rural Electrification and Renewable Energy (RERED) project.
The RERED project has already installed about 500,000 Solar Home Systems (SHS) in remote rural areas of Bangladesh and is considered to be one of the most successful SHS programs in the world.
"The GPOBA projects will support the Government of Bangladesh's goal to ensure that the entire country has access to electricity by 2021. 80% of Bangladesh's population live in rural areas and are also the group most affected by a lack of sufficient electricity generation. These projects will help 140,000 more households gain access to affordable electricity," WB acting country director Zahid Hussain said.
The approved GPOBA grants will be used to subsidize the cost of SHS or mini-grid installations for poor households. The Infrastructure Development Company Limited (IDCOL) will act as manager for both schemes.
"Our mission at IDCOL is to encourage private sector investment in energy and infrastructure projects," said IDCOL CEO Islam Sharif.