Bangladesh pursues $300 million-plus WB loan for energy projects

This is as per reports, which cited the concerned officials in this regard.

The Economic Relations Division (ERD) submitted the request to the WB several months ago, seeking financing for two investment projects and one technical assistance (TA) project aimed at energy sector development.

The ERD has sought approximately $337 million in loans for financing a gas transmission line, a power distribution line, and a TA project.

However, officials noted that the Washington-based lender was yet to respond to the request.

The state-run Gas Transmission Company Limited (GTCL) requires funding to establish the Langalbandh-Mawa-Gopalganj-Khulna gas transmission pipeline through the Padma Bridge, intended to supply natural gas to the western zone of the country.

The GTCL seeks $130.76 million in funds from the WB for transmission line development.

Similarly, the West Zone Power Distribution Company Limited (WZPDCL) aims to undertake the Distribution System Improvement under WZPDCL Area project with financial support.

The project, requiring approximately $204 million, focuses on enhancing power distribution lines in western zone areas, including Khulna and parts of Dhaka divisions.

Additionally, the Ministry of Power, Energy, and Mineral Resources has forwarded another TA project funding request to the WB, seeking $2.3 million in foreign aid.

Despite submitting the funding requests between October and November 2023, Bangladesh was yet to receive a response. Nevertheless, the ERD officials remain hopeful that the WB will support these crucial projects, emphasising their significance for the nation’s development.

Expanding gas transmission lines to western regions, alongside power distribution line improvements, is vital for ensuring uninterrupted energy supply and facilitating industrialisation. The proposed gas transmission pipeline is expected to address gas supply deficiencies in western Bangladesh, while power distribution enhancements will enhance electricity supply reliability for consumers in the west zone.

Fibre2Fashion News Desk (DR)