World Bank supports power plants
The World Bank (WB) supported Investment Promotion and Financing Facility (IPFF) project has completed financing four small power plants (SPPs), adding a total of 77 megawatts (MW) to the national grid, said a statement.
The three 22-MW plants in Tangail, Narshingdi and Feni are operating with their full capacities. Another 22-MW SPP located at Barabkunda in Chittagong was also to start power generation by April 2009.
The IPFF project helps build the capacity of the local financial sector for longer term financing to the much-needed private-public partnership ventures in infrastructure.
Financial institutions can apply for the IPFF fund through the Bangladesh Bank for financing infrastructure projects.
The IPFF project has disbursed $27.21 million out of the total WB approved amount of $47.50 million.
A WB team recently reviewed the IPFF project implementation progress. The team expressed satisfaction over the 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 in October 2008.
Malancha Holdings Ltd applied for $29.08 million for supplying power to Dhaka EPZ and Chittagong EPZ. The application for these two power plants is under process.
The public-private partnership venture took off with co-financing from WB and NCC Bank, Dhaka Bank, Dutch-Bangla Bank, IIDFC, and Eastern Bank -- all being participating financial institutions of IPFF project for financing the government-endorsed power plants of Doreen Power Generation and Systems Ltd, Doreen Power House and Technology Ltd, and Regent Power Ltd.
In consultation with the stakeholders, the project team is now actively working for diversifying investment into other infrastructure sectors' 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, the statement added.
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