http://www.thedailystar.net/newDesign/news-details.php?nid=124139
Trust Bank to go big on biogas fund
Sajjadur Rahman
Trust Bank, a third generation private commercial bank, will fund for the first time biogas plants on a large scale to help rural people get renewable energy, which will ultimately make them more economically viable, said the bank’s chief executive.
Initially, under a pilot project the bank has allocated Tk 5 crore for the programme and the amount will go up on the basis of the feedback it receives.
“If we succeed, then such projects will proliferate,” Shah S Sarwar, managing director, told The Daily Star.
The programme will formally be inaugurated on February 8 in Manikganj district with handing over cheques to 16 beneficiaries, Tk 3 lakh for each.
A beneficiary will buy four cows with the money.
The Trust Bank MD firmly believes these biogas plants will be able to provide livestock farmers with a sustainable cooking fuel and potent organic fertiliser. This will help face power and gas crisis by using eco-friendly technology, Sarwar said.
The bank has taken up the project to avail of the refinancing facility introduced by Bangladesh Bank in August last year.
The central bank has formed a Tk 200 crore revolving fund to provide loans at low interest rate for setting up solar energy, biogas and effluent treatment plants through the commercial banks.
BB will charge 5 percent interest rates on commercial banks that will take 9 percent from the customers.
Biogas practices in poor African and Asian countries are on the rise, mainly with the help of the donor and nongovernmental organisations’ financial supports. Some NGOs in Bangladesh are also providing funds for the rural folk to implement biogas plants.
According to bankers, commercial banks took least interest in stepping into this area because of what they said high cost of delivery and supervisory role.
Trust Bank has made a strategic alliance with Enterprise Development Company Limited (EDCL) to reduce its costs for the loans.
“It’s a combination of commercial and social institutions to make the delivery easy,” said Sarwar.
The EDCL will help borrowers develop their business and commercialisation of biogas.
The move will also help the bank reach out to millions of the rural people who have less access to banking, Sarwar said.
sajjad@thedailystar.net
