Govt signs $30m agreement with World Bank for power transmission network

An Agreement as additional financing on 'Enhancement and Strengthening of Power Transmission Network in Eastern Region Project' amounting to SDR 22.9 million (equivalent to $30 million) was signed on Thursday between the government and World Bank. 

The Power Grid Bangladesh is implementing the project. The project aims to ensure reliable power supply and meet the growing demand for electricity in the greater Cumilla, Chattagram, and Noakhali regions. 

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD) and Gayle Martin, Acting Country Director, World Bank signed the agreement on behalf of their respective sides, said an ERD press release. 

The initial financing agreement of this project, amounting to $450.64 million [equivalent to Euro 376 million], was signed on April 10, 2018 under Scale-Up Facility (SUF) of the World Bank. 

A total of US$ 50.00 million was cancelled from the original amount to repurposing for the Covid-19 related projects during the Covid period. Now, additional financing of $30.00 million from the World Bank is needed for the successful completion of the project.

 The loan repayment period is 30 years with a grace period of 5 years. The interest rate for this loan agreement is 1.25 percent and the service charge is 0.75 percent. The maximum commitment charge is 0.5 percent, however the World Bank Board decided to waive the commitment charge for this year.