$217m WB fund to upgrade power project

The Bangladesh government yesterday signed a USD 217-million financing agreement with the World Bank’s (WB’s) International Development Association (IDA) to upgrade a unit in the Ghorashal power station, which will more than double the unit’s existing electricity generation capacity. The Ghorashal Unit 4 Repowering Project will transform a gas-fired steam unit—which is currently generating 170 MW—into an energy-efficient 409-MW plant. Such conversion to combined cycle technology will increase the plant’s overall efficiency from the existing 30 per cent to 54 per cent. It will require only 18 per cent more natural gas.
"Bangladesh can grow its economy much faster and reduce poverty significantly if its energy infrastructure can meet the demand for reliable and low-cost electricity," said Rajashree Paralkar, WB’s acting country director for Bangladesh.
"The project will increase the efficiency in gas utilization of an existing unit and add new generation capacity to address the country’s power needs,” added Rajashree Paralkar. The project will also reduce fuel consumption per gigawatt hour by 44 per cent and lower greenhouse gas emissions. In addition, it will provide capacity building and institutional support to the Bangladesh Power Development Board (BPDB).
"The government has prioritised improvement of the efficiency of gas-based power plants, given the shortages in natural gas production," said Kazi Shofiqul Azam, additional secretary of the Economic Relations Division (ERD). "The repowering of the Ghorashal Unit 4 will quickly add new generation capacity without adding major infrastructure costs for fuel supply," he added. The financing agreement was signed by Kazi Shofiqul Azam and Rajashree Paralkar on behalf of the government and the WB at the ERD office. With this credit, the bank’s total support to the country’s power sector has crossed USD 1.7 billion. In FY 16, the WB committed over USD 773 million in new financing in Bangladesh. The credit from IDA has a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent.

 

$217m WB fund to upgrade power project

The Bangladesh government yesterday signed a USD 217-million financing agreement with the World Banks (WBs) International Development Association (IDA) to upgrade a unit in the Ghorashal power station, which will more than double the units existing electricity generation capacity. The Ghorashal Unit 4 Repowering Project will transform a gas-fired steam unitwhich is currently generating 170 MWinto an energy-efficient 409-MW plant. Such conversion to combined cycle technology will increase the plants overall efficiency from the existing 30 per cent to 54 per cent. It will require only 18 per cent more natural gas. Bangladesh can grow its economy much faster and reduce poverty significantly if its energy infrastructure can meet the demand for reliable and low-cost electricity, said Rajashree Paralkar, WBs acting country director for Bangladesh. The project will increase the efficiency in gas utilization of an existing unit and add new generation capacity to address the countrys power needs, added Rajashree Paralkar. The project will also reduce fuel consumption per gigawatt hour by 44 per cent and lower greenhouse gas emissions. In addition, it will provide capacity building and institutional support to the Bangladesh Power Development Board (BPDB). The government has prioritised improvement of the efficiency of gas-based power plants, given the shortages in natural gas production, said Kazi Shofiqul Azam, additional secretary of the Economic Relations Division (ERD). The repowering of the Ghorashal Unit 4 will quickly add new generation capacity without adding major infrastructure costs for fuel supply, he added. The financing agreement was signed by Kazi Shofiqul Azam and Rajashree Paralkar on behalf of the government and the WB at the ERD office. With this credit, the banks total support to the countrys power sector has crossed USD 1.7 billion. In FY 16, the WB committed over USD 773 million in new financing in Bangladesh. The credit from IDA has a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent.