Bangladesh, World Bank Ink $55 Mn Pact to Expand Renewable Energy Usage in Rural Areas

World Bank Backs Himachal Power Sector with USD 200mn

The additional financing to the Second Rural Electrification and Renewable Energy Development (RERED II) Project will install 1,000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cookstoves in rural areas.

In order to expand renewable energy usage in rural areas, the Bangladesh government has inked a USD 55 million financing pact with the World Bank.

Further, the additional financing to the Second Rural Electrification and Renewable Energy Development (RERED II) Project will install 1,000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cookstoves in rural areas.

Today, Bangladesh has one of the world’s largest domestic solar power programs, covering 14 percent of the population.

Commenting on the deal, Country Director for Bangladesh, Bhutan, and Nepal, Qimiao Fan said, “Since 2003, the World Bank has been helping Bangladesh to improve access to electricity through renewable energy. Following a successful demand-driven public-private partnership programme, Bangladesh installed 4.2 million solar home systems.”

“This additional financing will help scale up use of clean and renewable energy such as solar irrigation pumps and solar mini-grids, which will help reduce poverty, improve the environment, create jobs, and open up new opportunities for rural people.”

Moreover, with an additional USD 20 million support from the Green Climate Fund, the project will scale up the use of improved cookstoves, which emit 90 percent less carbon monoxide and use half as much firewood as a traditional cookstove.

These interventions will reduce greenhouse gas emissions and indoor air pollution.

Speaking on the development, Government of Bangladesh, Economic Relations Division, Secretary, Kazi Shofiqul Azam said, “The government of Bangladesh targets a 100 percent coverage of improved cookstove by 2030. The additional financing will be important to ensure that every rural household has an improved cookstove.”

Meanwhile, the credits have 38-year term period, including 6 years of a grace period, along with a service charge of 0.75 percent.