International Finance Corporation (IFC) has agreed to finance $1bn to foster regional power trade, set up LNG (liquefied natural gas) terminal and improve power transmission and generation capacity in Bangladesh.
The Power Division and a delegation of IFC, the private sector arm of the World Bank Group, had a meeting on Wednesday, agreeing on financing the projects, Power Cell Director General Mohammad Hossain told the Dhaka Tribune after the meeting.
The IFC’s Chief Investment Officer (Infrastructure and Natural Resources) Raghuveer Sharma arrived in Dhaka on Sunday on a four-day visit to Bangladesh.
Tawfiq-E-Elahi Chowdhury, advisor to the prime minister, power division secretary Monowar Islam, power division additional secretary Mofazzel Hossain, Bangladesh Energy Regulatory Commission (BERC) member Salim Mahmud, Rural Electrification Board Chairman Moin Uddin, and acting managing director of Power Grid Company of Bangladesh (PGCB), Chowdhury Alamgir Hossain were present at the meeting at Bidyut Bhaban in Dhaka.
Tawfiq-E-Elahi visited the World Bank headquarters in Washington in September to explore opportunities of IFC’s supports in developing power and energy sector in Bangladesh.
Bangladesh, a power-hungry country, is keen to import hydro electricity from its neighbours and requested IFC to finance regional trade project to boost regional cooperation, Mohammad Hossain said.
“We would also like to join in joint venture investment in such regional hydro power projects to benefit the people of the whole region. Bangladesh expects that IFC would help develop and finance for such projects,” he added.
There exist hydro power potentials of 150,000 megawatt (MW) in India, 30,000 MW in Bhutan and 83,000 MW in Nepal.
At the meeting, Bangladesh sought IFC support to set up two LNG terminals, Mohammad Hossain said. The meeting discussed about two approaches on LNG import one is Floating Storage Re- gasification Unit (FSRU) and the other one is land based re-gasification unit.
IFC would look into FSRU documents processed by the Petrobangla and help make them bankable, he added.
On the land based re-gasification unit, Power Cell would draft an Expression of Interest for inviting participation by private parties and IFC would help draft the EOI in a way that would be acceptable to both parties.
“IFC is interested to make available sub-national financing to PGCB on a corporate finance basis, which will help for the proposed cross-border inter-connectivity projects, as well as for evacuation of power from the proposed mega power projects in Moheskhali and Khulna areas,” said the official.
He said IFC has also agreed to fund power generation projects.