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Rural Electrification and Renewable Energy Development – SHS Project

Country   (and Region): Bangladesh  (South Asia)
Sector(s): Energy
Activity Objectives:

The principle objective of the project is to improve energy services in Bangladesh through increasing access to electricity among the poor. In the broader economic goal of reducing poverty, by deepening the involvement of the community based stakeholders, the project broadens the range of electrification options, thereby creating alternatives to state-led provision of electricity services.

Project Update:

The grant agreement was signed on May 13, 2010.

Development Impact:

The GPOBA project will specifically address the problems of low access to electricity in rural areas and insufficient capacity on the grid through installation of solar home systems (SHS) for rural households, mainly in remote areas. This program (in coordination with the Bangladesh mini-grid program, also managed by IDCOL) will extend electricity access to more than 140,000 households.

GPOBA's role:

GPOBA will provide grant funding used as a subsidy to reduce the cost of SHS for households. The subsidy is “pro-poor” in that poorer consumers will receive a relatively higher level of subsidy.

Activity Type: Subsidy Funding

Total Project Cost: US$194,000,000
GPOBA Technical Assistance:
GPOBA Grant: US$7,000,000
Subsidy Co-financing: US$13,500,000
  US$3,000,000
Grant Recipient: Infrastructure Development Company, Ltd. (IDCOL)
Environmental/Social Categorization:

B

Approval date: May 2009
Task Manager:

Raihan Elahi, Senior Energy Specialist - AFTEG

Status: Active