The World Bank (WB) has committed an additional $30 million to support Bangladesh in enhancing its power transmission network in the eastern regions.
The agreement was signed by Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and WB Acting Country Director Gayle Martin on January 24, 2025.
The funds will be used for an ongoing project to strengthen power transmission in greater Cumilla, Chattogram, and Noakhali. As the ERD states, this initiative is critical for ensuring a reliable electricity supply and meeting the increasing demand in these areas.
The initial financing agreement for this project, which amounted to $450.64 million, was signed on April 10, 2018. However, $50 million was redirected to address challenges arising from the COVID-19 pandemic. The current additional financing of $30 million is essential for the successful completion of efforts to improve power delivery in the eastern regions.
The loan has a five-year grace period and a 30-year repayment term. The annual interest rate is 1.25%, accompanied by a service charge of 0.75% and a maximum commitment charge of 0.5%.
