Deal with WB on $80m power loan soon: Muhith

The World Bank will fund US$80 million for construction of Sirajganj 225-megawatt combined-cycle power plant for which a contract will be signed soon.

Finance Minister AMA Muhith made the disclosure Monday after a meeting with a top official of a World Bank (WB) affiliate that discussed overall plans of lending to this sector.

Keiko Honda, executive vice-president of Multilateral Investment Guarantee Agency (MIGA), the political-risk insurance and credit- enhancement arm of the World Bank Group, called on the minister at the latter's secretariat office.

The government will provide sovereign guarantee against the loan to be given by MIGA, the finance minister told reporters.

He said MIGA was supposed to give loan for construction of another power plant in Ghorashal. But it may be delayed by three more months.

"The reason behind the delay is they have also started considering another loan for a power plant in Ashuganj. So the loan for Ghorashal plant will be deferred until next year," Mr Muhith said.

Asked about the rate of interest on loan from MIGA, the minister said, "Yes, the interest rate is little bit high. We also give guarantee against the loan."

When his attention was drawn as to whether the MIGA delegation discussed investment risks in Bangladesh, Mr Muhith answered in the negative.

Rather, he said, the MIGA and the IFC (International Finance Corporation), the private-sector arm of the World Bank Group, are quite active in Bangladesh.

     syful-islam@outlook.com