World Bank approves 560 m dollars for two projects
The World Bank approved 560 million dollars for two projects in Bangladesh to improve reliable power supply and turn microenterprises into environmentally sustainable.
Of the total amount, the Washington-based lending agency will provide 450 million dollars for Enhancement and Strengthening of Power Transmission Network in Eastern Region Project while another 110 million dollars for Sustainable Enterprise Project (SEP).
The credits will come from the International Development Association (IDA), the World Bank's concessional lending arm. Reports BSS.
The Power Transmission Project will receive a scale-up facility credit from IDA, which has a 35-year maturity including a four-year grace period. SEP will receive interest-free IDA credit, which is repayable in 38 years, including a 6-year grace period, and carry a service charge of 0.75 percent, said a Word Bank press release received in Dhaka on Friday.
The release said 450 million dollars Enhancement and Strengthening of Power Transmission Network in Eastern Region Project will expand the electricity transmission network in the eastern region, covering the greater Comilla and Noakhali and part of the greater Chittagong.
It will provide new electricity connections to 2 lakh 75 thousand households and 16 thousand agricultural consumers and reduce power interruptions.
The project will expand the existing grid network by building 13 new substations and rehabilitating an existing one. It will also construct 290 kilometers new and rehabilitate 157 kilometers existing transmission lines.
The 110 million dollars Sustainable Enterprise Project (SEP), also approved on Friday, will help 20 thousand microenterprises adopt environmentally-friendly practices. It covers manufacturing and agribusiness sectors, including leather, mini textiles, light engineering, plastic, food processing, metal products, livestock, horticulture, aquaculture, and poultry.
The project will incentivize microenterprise clusters to use cleaner technologies and joint amenities such as shared recycling or storage facilities. It will provide loans to microenterprises for innovative, environmental-friendly technologies and practices. About 30 percent of the firms that will benefit are owned by female entrepreneurs.