The World Bank has approved $640 million in funding for two major projects to strengthen gas supply security and improve air quality in Bangladesh. The approval was granted on June 18 by the organization’s Board of Executive Directors.
Gail Martin, the World Bank’s Interim Country Director for Bangladesh, said energy security and air quality improvement are critical for the country’s sustainable growth and job creation.
The first project, titled Energy Sector Security Enhancement, will provide $350 million in affordable financing for Petrobangla, the state-owned energy company.
It is expected to mobilize up to $2.1 billion in private capital over seven years to support long-term liquefied natural gas (LNG) imports. Currently, about 25 percent of Bangladesh’s gas consumption relies on LNG, with 42 percent of this used in the power sector.
Frequent supply disruptions have negatively impacted electricity production and the broader economy. The project aims to ensure stable LNG supply and effective payment systems.
Olayinka Adebiyi, Senior Energy Specialist and Team Leader, said the initiative would help ensure reliable and affordable electricity, supporting sustainable economic growth.
The second project, Bangladesh Clean Air Project, involves $290 million to improve air quality management, strengthen pollution monitoring, and establish modern monitoring stations.
Air pollution caused over 159,000 premature deaths in 2019 and cost the country the equivalent of 8.3 percent of its GDP.
The project will replace 400 old diesel buses with electric ones, build five new vehicle inspection centers, modernize two existing centers, and deploy 20 mobile emission units, aiming to cut 2,734 metric tons of PM2.5 emissions annually.
Ana Luisa Gomes Lima, Lead Environment Specialist, called the initiative a landmark step that will also promote regional cooperation.
