Bangladesh gets $217m from WB to upgrade power plant

The government yesterday signed a $217 million financing agreement with the World Bank to upgrade Ghorasal power station, more than doubling the generation capacity of one of its units.

A repowering project will transform a gas-fired steam unit, which is currently generating 170 megawatts, into an energy-efficient 409MW plant.

Such a conversion to combined cycle technology will increase the plant’s overall efficiency from an existing 30 percent to 54 percent while requiring only 18 percent more natural gas, the WB said in a statement.

“Bangladesh can grow its economy much faster and reduce poverty significantly if its energy infrastructure can meet demand for reliable, low-cost electricity,” said Rajashree Paralkar, the WB’s acting country director for Bangladesh.

“The project will increase efficiency in gas utilisation of an existing unit, while adding new generation capacity to address the country’s severe power needs.”

The project will also reduce the specific fuel consumption per gigawatt/hour by 44 percent and lower greenhouse gas emissions. In addition, the project will provide capacity building and institutional support to Bangladesh Power Development Board.

Kazi Shofiqul Azam, additional secretary of the Economic Relations Division, said the government has prioritised improving the efficiency of gas-based power plants, given the shortages in natural gas production.

The repowering of the unit will quickly add new generation capacity without adding major infrastructure costs for fuel supply, he said.

Azam and Paralkar signed the agreement at the ERD.

With this credit, the WB’s total support to Bangladesh’s power sector passes $1.7 billion. In 2015-16, the WB committed more than $773 million in new financing to Bangladesh.

The credit from the WB’s International Development Association has a 38-year term, including a six-year grace period and a service charge of 0.75 percent.