The World Bank on Tuesday approved US$ 172 million to support installation of an additional 630,000 solar home systems and other renewable energy mini-grid schemes in the country's rural areas.
The credit from the International Development Association, the World Bank's concessionary arm, has 40 years to mature with a 10-year grace period and carries a service charge of 0.75 percent, said a WB press release issued on Wednesday.
The US$ 172 million credit is an additional financing to the ongoing Rural Electrification and Renewable Energy Development Project following success in installing solar home systems in rural areas where grid electricity is not economically feasible or hard to reach.
The solar home system component of the RERED project is implemented by government-owned financial institution, the Infrastructure Development Company Limited and its partner organizations, mostly non-government organizations.
The World Bank had earlier provided additional financing of $130 million in end 2009. Since December 2009, more than 300,000 solar home systems have been installed.
More than a million homes and shops in remote areas have installed solar systems with support from the World Bank and other development partners. Such systems are most suitable for remote and dispersed communities which the national power grid connection cannot reach, the press release said quoting WB country director Ellen Goldstein.
The solar home systems have already improved the quality of life of millions of people in Bangladesh and provided opportunities for new village enterprises, the WB executive said.
