IFC, a member of the World Bank Group, has invested $20 million as a long-term loan in Omera Petroleum, a subsidiary of MJL Bangladesh Limited, to help the company double its capacity and increase the availability of liquefied petroleum gas (LPG), especially in rural areas.
The IFC loan is part of its project to double its capacity and make LPG available in nearly all sub-districts of the country. This will expand LPG access to 350,000 additional households (around 12% of total market potential) over the life of the loan.
It will also help reduce greenhouse gas emissions by replacing kerosene, wood, and other hazardous cooking fuels, and allowing the limited reserves of natural gas to be diverted to power generation and industries.
Wendy Werner, IFC Country Manager for Bangladesh, said: “IFC is committed to delivering clean energy to all people in Bangladesh.”
Access to energy and diversification of fuel are two critical bottlenecks in the growth trajectory of Bangladesh. In the last five years, IFC has invested about $800 million to remove these obstacles. This is IFC’s first investment to promote LPG in Bangladesh.
“Omera has made great socio-economic contribution across Bangladesh by delivering the largest volume of LPG using our state-of-the art infrastructure across urban and remote areas.
“This is the beginning of a long-term partnership between IFC and the East Coast Group to finance and build larger projects that will help achieve our Group’s objectives to provide easy access to green fuels and clean energy in every district of Bangladesh,” said Tanzeem Chowdhury, Head of Corporate Planning and Business Development of East Coast Group.
