The New Nation - Internet Edition

Staff Reporter

The World Bank has approved for Bangladesh a $350 million international development association (IDA) credit to increase power supply during peak hour in the country.

The Siddhirganj Peaking Power Project will utilise the fund to finance the construction of a 300-megawatt gas turbine power plant at Siddhirganj, according to WB sources.

Under the project, the WB will also finance a 60-km natural gas pipeline from Bakhrabad to Siddhirganj. The pipeline will improve the reliability of gas supply to the Siddhirganj power plant and an 11-km electricity transmission line to distribute power among consumers from the plant.

The Siddhirganj Power Plant is expected to begin operation in 2011.

The project will also help strengthen the institutional capacity of three implementing agencies -- Gas Transmission Company Limited (GTCL), Electricity Generation Company of Bangladesh (EGCB) and Power Grid Company of Bangladesh (PGCB).

"Bangladesh is now in the midst of a serious power crisis," said Xian Zhu, World Bank Country Director for Bangladesh.

"Power generation has failed to keep pace with demand and in the last two years increasing shortages of natural gas as the primary fuel used in power generation have added to the sector's woes. This project is expected to make a major contribution to meeting peak demand for power and bolster the capacity and reliability of the gas and power transmission networks," he added.