World Bank’s International Development Association (IDA) and the Government of Bangladesh have signed an agreement to upgrade a unit in the Ghorashal power station. As per this agreement Bangladesh will receive US $217 million from World Bank which will enable it to more than double the Ghorashal unit’s existing electricity generation capacity. Currently this unit is generating 170 MW and when completed, this project will increase this capacity to 409 MW. The improvements will involve transforming a gas-fired steamunit which will increase the plant’s overall efficiency from 30% to 54%. The specific fuel consumption per gigawatt hour will be reduced by 44% and the emission of greenhouse gases will also be considerably lowered. Along with financial aid, capacity building and institutional support will also be provided to the Bangladesh Power Development Board.
World Bank’s Acting Country Director for Bangladesh, Mr. Rajashree Paralkar has stated that improvement in the power sector will help Bangladesh immensely asreliable, low-cost electricity is one of the main requirements for this country’s economy to grow steadily at a healthy rate. This credit from IDA has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent. Including this aid of US $ 217 million, World Bank’s total support to the Bangladesh’s power sector till date is around US $1.7 billion. In the fiscal year 2016, the World Bank has committed over US $773 million in new financing in Bangladesh.