Bangladesh to boost renewables use with USD-55m World Bank loan

The World Bank will provide USD 55 million (EUR 47m) in debt to Bangladesh to enhance renewable energy use in rural areas of the South Asian nation.

The funds will go for the installation of 1,000 solar irrigation pumps and 30 solar mini-grids, the World Bank said on Wednesday. In order to cut greenhouse gas emissions, about four million improved cookstoves will be installed with the financing, which will come together with an additional USD-20-million loan from the Green Climate Fund for cookstoves with lower emission levels in particular.

The credit facilities have a term of 38 years, including a six-year grace period. They will be extended through the International Development Association, the World Bank’s concessional lending unit providing grants or zero-interest loans.

The enhancements will be made as part of Bangladesh’s Second Rural Electrification and Renewable Energy Development (RERED II) initiative. According to the World Bank, the country has one of the largest domestic solar programmes globally, covering 14% of its population.

(USD 1.0 = EUR 0.855)

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