Monday, April 13, 2009

World Bank Bangladesh - 100 MW More Power Supply to National Grid

The World Bank supported Investment Promotion and Financing Facility (IPFF) Project helps to build the capacity of the local financial sector for longer term financing to the much needed private-public partnership ventures in infrastructure. The financial Institutions can apply for the IPFF fund through Bangladesh Bank for financing infrastructure projects. The IPFF project has completed financing four small power plants (SPPs), adding a total of 77MW power to the national grid. 

The three 22MW plants in Tangail, Narshingdi, and Feni are operating at their full capacities. The 11 MW plant in Mohipal, Feni will commence operation early this month. Another 22MW SPP located at Barabkunda, Chittagong will also start power generation by April 2009.The IPFF project has disbursed $27.21 million out of the total World Bank approved amount of $47.50 million. 

A World Bank team recently reviewed IPFF project implementation progress. The team expressed satisfaction over significant progress made in implementation of the project. Lending activities under on-lending component of the project is making progress as planned during the Mid Term Review during October 2008.

Malancha Holdings Ltd. applied for US $29.08 million for supplying power to DEPZ and CEPZ. The application for these two power plants is under process. Together, demand for IPFF fund has now exceeded by $7.78 from the original allocation of $47.5 million. 

The public private partnership venture took off with co-financing from World Bank and NCC Bank Limited, Dhaka Bank Limited, Dutch Bangla Bank Limited, IIDFC, and Eastern Bank Limited – all being participating financial institutions (PFIs) of IPFF Project for financing the Government endorsed power plants of Doreen Power Generation and Systems Limited, Doreen Power House and Technology Limited, and Regent Power Limited. 

IPFF project also provides Technical Assistance which needs to speed up. The World Bank team suggested Board of Investment (BOI), the secretariat for Private Investment Committee of (PICOM) of the to take measures and BB and IIFC to coordinate with the Planning Commission for integrating PPP projects in the Annual Development Program framework. 

In consultation with the stakeholders, the project team is now actively working for diversifying investment into other infrastructure sector’s schemes such as container terminal, land port, energy saving equipment, waste disposal facilities, and environmental development. With demand arising from a potential pipeline, additional financing for IPFF will be made as per request to be made by the Government.

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