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.

The grant agreement was signed on May 13, 2010.

The GPOBA project will specifically address the problems of low access to electricity in rural areas and insufficient capacity on the grid through development of renewable energy mini-grids for village households and small to medium enterprises (timber mills, kiosks). This program (in coordination with the Bangladesh solar home system program, also managed by IDCOL) will extend electricity access to more than 140,000 households.

GPOBA funds will buy down the cost of installing renewable energy mini-grids. Amount of grant financing to be provided in a sub-project would be determined based on the outcome of a feasibility study, while the maximum of grant would be limited to 50% of the system cost with the remainder financed by IDCOL.

B

Raihan Elahi, Senior Energy Specialist