JICA joins IFC, others to support Bangladesh Address Electricity Generation Needs
Nearly 40 % of Bangladesh’s 160 million population live without access to electricity. Citizens encounter frequent blackouts...
IFC, a member of the World Bank Group, has brought in Japanese agency JICA to invest $30 million in Sembcorp North-West Power Company Ltd., a joint venture of Sembcorp Utilities and Bangladesh's state-owned North-West Power Generation Company Ltd- that is building a 414MW dual-fuel combined-cycle power plant at Sirajganj, Bangladesh. The plant will significantly expand power-generation capacity in Bangladesh.
JICA’s $30 million is part of the total financing package of $ 165 million that includes a loan from IFC’s own account as well as additional loans mobilised through partners. The total project cost is estimated at around $412 million.
Nearly 40 % of Bangladesh’s 160 million population live without access to electricity. Citizens encounter frequent blackouts. Severe power shortages are a major bottleneck for the growth of the job-creating manufacturing sector, hampering economic growth and poverty-alleviation efforts.
The power plant will be the second largest power plant in the country and represents the largest foreign direct investment into this sector in recent years. The success of the project will demonstrate the profitability and sustainability of public and private-sector partnerships in Bangladesh’s power sector to international players, helping attract additional capital to the sector.
IFC promotes sustainable growth and private-sector development in Bangladesh by investing in critical infrastructure, boosting financial inclusion, enhancing textiles competitiveness, and supporting reforms to make doing business easier for the private sector. IFC committed $635 million in Bangladesh, in own and mobilised funds across 13 projects, for the fiscal year ended June 30, 2016. IFC’s committed portfolio in Bangladesh is about $1 billion in 47 projects.
Tang Kin Fei, Group President and CEO, Sembcorp Industries, said, “Sembcorp's commitment towards supporting Bangladesh’s vision for continued growth and development is further strengthened with support from JICA, IFC, and other global investors. Sembcorp’s Sirajganj power plant will provide cost-effective and reliable energy solutions to the country for more than 22.5 years after its completion.”
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