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Dhaka Tribune

IFC finances $20m for power project

Update : 02 Apr 2014, 07:52 PM

IFC, a member of the World Bank Group, has invested $20.2 million in Regent Energy & Power Limited to help develop an independent thermal power project in Ghorashal.

The project will sell all output to the national electric power company, the Bangladesh Power Development Board, increasing the supply of reliable and low cost electricity that will contribute to economic growth, said a press release.

Nearly 50% of the population in Bangladesh does not have access to electricity.

This project will add low-cost power generation capacity in the country to improve access to power, reaching an estimated 1.8 million additional residential consumers.

The power generated will also support local industry to efficiently and competitively manufacture their products and create jobs.

The Regent plant will be established at a total cost of $84.2 million and is owned by Habib Group, a well-known business group, with stakes in textiles, steel, aviation, fertilizer, paper and power.

In addition to IFC, Infrastructure Development Company Limited and Bangladesh Infrastructure Finance Fund Limited will contribute $33.8 million to the project.

“With massive growth in energy demand in Bangladesh, this project can add reliable and sustainable capacity to the power network,” said Yasin Ali, Managing Director of Habib Group. 

Regent Energy & Power is IFC’s first investment in the power sector in Bangladesh since its investment in the country’s first independent power project in 1998.

“The project demonstrates that private sector can help the government meet growing demand for electricity. It is the first of several recent power projects in Bangladesh being considered for investments by IFC,” said Kyle F Kelhofer, IFC Country Manager.

IFC’s total investment in Bangladesh for FY 13 was $774 million. 

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