$515 million Deal between Bangladesh and World Bank

With this about 275,000 households and 16,000 agricultural consumers will get new electricity connection.

The government signed two financial agreements totaling $515 million with the World Bank to help expand electricity connecting network and improve insurance report.

The $450 million project will help improve electricity supply and reduce load in the eastern region. With this about 275,000 households and 16,000 agricultural consumers will get new electricity connection.

The project will build one 230 kV connecting line through greater Cumilla and four short distance 132 kV lines in Cumilla and Noakhali areas. It will also include 13 new substations and reconstruct an existing substation from the eastern part of the country. These will also help accomodate renewable energy and new generations into the network.

Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan, and Nepal said, In recent years, the government has significantly increased power generation. But, only investing in power generation is not sufficient, unless that is supported by improvement in transmission and distribution."

He said, By supplying uninterrupted power to Mirsharai Economic Zone, port, airport or other key economic facilities, the project will help unlock private sector growth."

Insurance Sector Development Project (ISDP) will help sustain the managerial and executive capacity of the Insurance Development and Regulatory Authority (IDRA), and Bangladesh owned insurance corporations-Shadharan Bima Corporation and Jiban Bima Corporation-through restore their systems and business practices.

Qimiao Fan added, Insurance helps people, especially the poor, and businesses to protect themselves from shocks. But, in Bangladesh, insurance penetration is particularly low: less than one percent of the population has insurance coverage. This project will help individuals, families, and businesses increase insurance coverage.

ERD Additional Secretary Mahmuda Begum said, The 7th Five-Year Plan includes a vision for providing electricity to all as well as improving the insurance coverage."

She added, Both projects will contribute to creating more and better jobs, and boosting growth."

ISDP will get interest-free IDA credit, which is reimbursed in 38 years and it includes a 6-year of grace period, it also carries a service charge of 0.75 percent.