The World Bank has approved two projects worth $640 million to assist Bangladesh in enhancing its gas supply and improving air quality. Gayle Martin, the World Bank Interim Country Director for Bangladesh, stated, "Enhancing energy security and air quality are critical economic and development priorities for Bangladesh."
The Energy Sector Security Enhancement Project, valued at $350 million, aims to improve gas supply security by facilitating access to cost-effective financing for Petrobangla, the state-owned oil and gas company. This project will utilize an IDA guarantee to mobilize up to $2.1 billion in private capital over seven years for new Liquefied Natural Gas (LNG) imports. Olayinka Bisiriyu Edebiri, a World Bank Senior Energy Specialist and Task Team Leader for the program, noted that the project would contribute to reliable and affordable electricity for industries and domestic users.
Additionally, the Bangladesh Clean Air Project is set at $290 million and takes a comprehensive approach to tackle air pollution. In 2019, air pollution caused over 159,000 premature deaths in Bangladesh. The project aims to strengthen the Department of Environment’s air quality monitoring network with new stations and operationalize a Continuous Emissions Monitoring Program.
The initiative will also introduce a fleet of 400 zero-emission electric buses by replacing aging diesel buses. It plans to construct five new Vehicle Inspection Centers and upgrade two non-functioning ones. Ana Luisa Gomes Lima, World Bank Lead Environment Specialist and Task Team Leader for the project, emphasized that regional dialogue and data sharing would be facilitated through this project.
Since its independence, Bangladesh has received about $45 billion from the World Bank in grants and credits. Recently, it has been one of the largest recipients of concessional financing from IDA.