Govt, WB sign $172m loan deal today for solar home systems

http://newagebd.com/newspaper1/business/39910.html

Govt, WB sign $172m loan deal today for solar home systems
United News of Bangladesh . Dhaka

The World Bank will provide $172 million additional financing for Bangladesh to support the installation of additional 6,30,000 solar home systems and other renewable energy mini-grid schemes.

The $172 million credit is an additional financing to the ongoing Rural Electrification and Renewable Energy Development Project following the project’s success in installing solar home systems in rural areas where grid electricity is not economically feasible or hard to reach, said an official at the World Bank.

Earlier, on October 4, 2011, the World Bank board approved the $172 million additional financing.

A loan agreement to this effect will be signed today at the Economic Relations Division.

World Bank country director Ellen Goldstein and ERD secretary Iqbal Mahmood will ink the deal on behalf of their respective sides.

The credit from the International Development Association, the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period. It carries a service charge of 0.75 per cent.

The official said more than a million homes and shops in remote areas have installed solar home systems with support from the World Bank and other development partners. The solar home system component of the RERED project is being implemented by the Infrastructure Development Company Ltd, government owned financial institution.

The partner organisations, mostly non-government organisations (NGOs), install the solar home systems. The World Bank had earlier provided an additional financing of $130 million at the end of 2009.

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