The government has closed an agreement with the World Bank on a $ 350 million credit to electrify the flagging power sector, a senior official said on Wednesday, reports bdnews24.com.

The deal will be tabled at a meeting of the World Bank in October for a final approval, Power Division secretary M Fouzul Karim Khan told bdnews24.com.
 
He said the bank was going to extend loan for power generation and transmission in Bangladesh after 12 years.
 
The discussion on the memorandum of understanding began Tuesday at Hotel Sonargaon.
 
After signing the papers, WB's senior energy specialist Alan F Townsend told bdnews24.com that several projects would be implemented from 2008 to 2016 with the money.
 
Townsend said it would be direct investment loan with conditions attached.
 
A senior official at the Power Division said two 300-megawatt power plants would be set up in Siddhirganj with $195 million. Electricity Generation Company of Bangladesh will implement the project.
 
Gas Transmission Company Ltd will roll out a 60-kilometre gas pipeline from Bakhrabad to Siddhirgant Power Plant at a cost of $ 80 million.
 
In addition, $45 million will be spent on a 11-kilometre transmission line from Siddhirganj to Maniknagar Grid Sub Station.
 
The official, who spoke on condition of anonymity because he was not authorised to brief the media, said the bank would give the loan for 40 years as credit from its soft-loan wing International Development Assistance.
 
According to the deal, the Power Division will not repay any instalment for 10 years from the signing of the agreement but pay 0.75 service charge during the period.

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