WB funds help raise power generation in pvt sector
Monday, 13 April 2009
FE Report
The World Bank (WB) supported Investment Promotion and Financing Facility (IPFF) project has completed financing four small power plants (SPPs), three of which are already operational, adding a total of 77 megawatts (MW) electricity to the national grid.
The three operational plants, each having a capacity of producing 22MW electricity are located at Tangail, Narshingdi, and Feni while the third, located in Mohipal with a capacity of 11MW, will start production sometime this month, sources said.
The IPFF project has so far disbursed US$27.21 million out of the total WB approved amount of $47.50 million.
The fund was provided to build the capacity of local financial sector for longer term financing to the much-needed private-public partnership ventures in infrastructure development.
The country's financial institutions can apply for the IPFF fund through Bangladesh Bank for financing infrastructure projects.
A WB team recently reviewed the IPFF project implementation progress and expressed satisfaction over the significant achievement made in implementation of the projects.
It maintained that the lending activities under on-lending component of the project are making progress as planned during the Mid Term Review during October 2008.
Malancha Holdings Ltd. applied for US $29.08 million for supplying power to Dhaka Export Processing Zone (DEPZ) and Chittagong Export Processing Zone (CEPZ).
The application for these two power plants is under process.
Besides, the demand for IPFF fund has now exceeded by $7.78 from the original allocation of $47.5 million.
The public private partnership venture took off with co-financing from WB to NCC Bank Limited followed by Dhaka Bank Limited, Dutch Bangla Bank Limited, Industrial and Infrastructure Development Finance Company Ltd (IIDFC) and Eastern Bank Limited.
All of them are participating financial institutions (PFIs) of the IPFF project for financing the government endorsed power plants of Doreen Power Generation and Systems Limited, Doreen Power House and Technology Limited, and Regent Power Limited.
The project also provides technical assistance, which needs to be expedited, the WB team recommended.
The team suggested Board of Investment (BOI) and the secretariat for Private Investment Committee of (PICOM) to take measures and Bangladesh Bank and infrastructure Investment Facilitation Centre (IIFC) to coordinate with the Planning Commission for integrating public-private partnership (PPP) projects in the Annual Development Program (ADP) framework.
The World Bank (WB) supported Investment Promotion and Financing Facility (IPFF) project has completed financing four small power plants (SPPs), three of which are already operational, adding a total of 77 megawatts (MW) electricity to the national grid.
The three operational plants, each having a capacity of producing 22MW electricity are located at Tangail, Narshingdi, and Feni while the third, located in Mohipal with a capacity of 11MW, will start production sometime this month, sources said.
The IPFF project has so far disbursed US$27.21 million out of the total WB approved amount of $47.50 million.
The fund was provided to build the capacity of local financial sector for longer term financing to the much-needed private-public partnership ventures in infrastructure development.
The country's financial institutions can apply for the IPFF fund through Bangladesh Bank for financing infrastructure projects.
A WB team recently reviewed the IPFF project implementation progress and expressed satisfaction over the significant achievement made in implementation of the projects.
It maintained that the lending activities under on-lending component of the project are making progress as planned during the Mid Term Review during October 2008.
Malancha Holdings Ltd. applied for US $29.08 million for supplying power to Dhaka Export Processing Zone (DEPZ) and Chittagong Export Processing Zone (CEPZ).
The application for these two power plants is under process.
Besides, the demand for IPFF fund has now exceeded by $7.78 from the original allocation of $47.5 million.
The public private partnership venture took off with co-financing from WB to NCC Bank Limited followed by Dhaka Bank Limited, Dutch Bangla Bank Limited, Industrial and Infrastructure Development Finance Company Ltd (IIDFC) and Eastern Bank Limited.
All of them are participating financial institutions (PFIs) of the IPFF project for financing the government endorsed power plants of Doreen Power Generation and Systems Limited, Doreen Power House and Technology Limited, and Regent Power Limited.
The project also provides technical assistance, which needs to be expedited, the WB team recommended.
The team suggested Board of Investment (BOI) and the secretariat for Private Investment Committee of (PICOM) to take measures and Bangladesh Bank and infrastructure Investment Facilitation Centre (IIFC) to coordinate with the Planning Commission for integrating public-private partnership (PPP) projects in the Annual Development Program (ADP) framework.