• Wednesday, Sep 26, 2018
  • Last Update : 02:18 am

Govt signs $55m agreement with World Bank for renewable energy in rural areas

  • Published at 03:00 pm May 30th, 2018
  • Last updated at 03:08 pm May 30th, 2018
World Bank renewable energy
Kazi Shofiqul Azam, secretary of Economic Relations Division, and Qimiao Fan, country director for Bangladesh, Bhutan, and Nepal, signed the agreement on behalf of their respective sides at the Economic Relations Division on Wednesday Courtesy

This will inevitably reduce greenhouse gas emissions and indoor air pollution

The government has signed a $55 million financing agreement with the World Bank to expand renewable energy uses in rural areas.

Kazi Shofiqul Azam, secretary of Economic Relations Division, and Qimiao Fan, country director for Bangladesh, Bhutan, and Nepal, signed the agreement on behalf of their respective sides at the Economic Relations Division on Wednesday.

Qimiao Fan said: “Since 2003, the World Bank has been helping Bangladesh to improve access to electricity through renewable energy. Following a successful demand-driven public-private partnership program, Bangladesh installed 4.2 million solar home systems.”  

With an additional $20 million support from the Green Climate Fund, the project will scale up the use of improved stoves, which emit 90% less carbon monoxide and use half as much firewood as a traditional stove. 

This will inevitably reduce greenhouse gas emissions and indoor air pollution.

The additional financing to the Second Rural Electrification and Renewable Energy Development (RERED II) Project will install 1,000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cooking stoves in rural areas. 

“This additional financing will help scale up the use of clean and renewable energy such as solar irrigation pumps and solar mini-grids, which will help reduce poverty, improve the environment, create jobs, and open up new opportunities for rural people,” Qimiao said. 

“The government of Bangladesh aims for 100% coverage of improved cooking stoves by 2030,” Shofiqul Azam said.

The credits are from the International Development Association, the World Bank’s concessional lending arm, which provides grants or zero-interest loans.  

The credits have a 38-year term, including a six-year grace period, and a service charge of 0.75%.

In recent years, Bangladesh has been among the largest recipients of the World Bank’s interest-free credits.