$350m power deal with WB on Tuesday
Wednesday, 17 September 2008

Staff Correspondent

Negotiations with the World Bank on a proposal for a $350 million credit for the power sector will be finalised on Tuesday, a top official said.

Power Division secretary M Fouzul Kabir Khan told bdnews24.com they would sit with the bank over the final details of the deal, but an understanding has already been reached over the size of the loan.
 
The negotiation started sometime back and is expected to conclude at a meeting in Sonargaon Hotel Tuesday. The proposal will then be sent to the World Bank board for a final approval.
 
Power Division officials said a 300 megawatt power plant will be set up at Siddhirganj with the $350 million credit. A gas pipeline from Bakhrabad to Siddhirganj Power Plant will be laid down by the Gas Transmission Company Ltd.
 
Besides, a transmission line from Siddhirganj to Maniknagar grid station would be rolled out.
 
The credit, which will be disbursed through the bank's lending wing, International Development Association (IDA), is for 40 years with easy interest. There will be no instalment of the credit for first 10 years and only interest will be payable.
 
The bank is giving this loan for power generation and transmission after 12 years; it earlier gave loan for power transmission line of the rural electrification boards.
 
An official with the Power Division, who spoke on condition of anonymity as he was not authorised to brief the press, said that the bank had not agreed at first to provide loan for power generation and transmission line citing lack of transparency in power sector.
 
Khan, the power secretary, said from the beginning of the Ramadan, power generation hovered between 3600 and 3700 mw.

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