World Bank
World Bank lifts global growth outlook to 5.6% on US, China rebounds
The World Bank on Tuesday forecast global growth for this year at 5.6 percent, up 1.5 percentage points from its estimate in January as the United States and China showed robust rebounds from the coronavirus pandemic-induced downturn.
The Washington-based lender also revised up Japan's growth for this year by 0.4 point to 2.9 percent on the back of fiscal support measures, but noted that the economic benefits from this summer's Tokyo Olympics will be limited due to the absence of foreign spectators.
While emphasizing that this year's global growth outlook will mark the strongest recovery from any of the global recessions in the past 80 years, the World Bank warned in its semiannual Global Economic Prospects report that the rebound is "highly uneven" amid "highly unequal" coronavirus vaccine access.
Also read: China among top 10 improvers in business climate 2nd year in a row: World Bank
"Growth is concentrated in a few major economies, with most emerging market and developing economies lagging behind," the report said.
While about 90 percent of advanced economies are expected to regain their pre-pandemic per capita income levels by 2022, only about one-third of emerging market and developing economies are expected to do so, it added.
Global growth, which is estimated to have contracted 3.5 percent last year due to the pandemic, is projected to rise to 4.3 percent next year, a 0.5 point upgrade from the earlier estimate.
Also read: Emerging, developing economies less prepared for downturn than 10 years ago: World Bank
Among major economies, U.S. growth is expected to reach 6.8 percent this year, its fastest pace since 1984, owing to large-scale fiscal support, mass vaccination efforts and an ongoing easing of pandemic restrictions, according to the World Bank.
In March, U.S. President Joe Biden signed into law a $1.9 trillion stimulus bill, bringing the total fiscal support provided since the beginning of the pandemic last year to over one-quarter of the gross domestic product, it said.
But U.S. growth next year will soften to 4.2 percent amid diminishing fiscal support.
Japan's growth is expected to moderate to 2.6 percent in 2022, held back by lingering weakness in consumption amid subdued wage growth, the report said.
Also read: World Bank prediction on Bangladesh economy inconsistent: Finance Minister
China, after expanding 2.3 percent in 2020, is expected to see its growth jump to 8.5 percent in 2021, an upward revision of 0.6 point on expectations of stronger foreign demand. Its growth is expected to slow to 5.4 percent in 2022.
The eurozone economy is believed to grow 4.2 percent and 4.4 percent in 2021 and 2022, respectively.
Global trade is forecast to grow 8.3 percent this year after plunging by the same percentage a year earlier.
Ex-WB adviser writes how Pakistan may end up taking aid from Bangladesh
Abid Hasan, a former adviser to the World Bank for the Pakistan Programme, has praised Bangladesh's economic growth while highlighting how Pakistan has gone around the world with a "begging bowl" with a possibility of taking aid from Bangladesh in a decade.
"It was unthinkable, 20 years back, that Bangladesh’s GDP per-capita in 2020 would be almost twice that of Pakistan. Bangladesh could be an economic powerhouse in 2030 if it grows at the same rate as in the past," he said in an article titled "Aid from Bangladesh."
The article appeared on The News on Monday, also reads, "If Pakistan continues its dismal performance, it is in the realm of possibility that we could be seeking aid from Bangladesh in 2030."
Abid Hasan, former Member of Pakistan Economic Advisory Committee and Federal Board of Revenue Tax Reforms Group, said if they continue with a ‘business as usual’ policy, they could end up taking aid from Bangladesh in a decade.
Read:Thailand axes travel corridors with Bangladesh, Nepal, Pakistan
In order to establish an economically strong Pakistan, it is incumbent on the PTI to reach out to all political parties to develop a national consensus on the fundamental reforms necessary to accelerate inclusive growth and at the same time lower debt, said the former WB adviser.
At the beginning of his article, Hasan said every government in Pakistan, including the current one, has gone around the world with a begging bowl.
"We’re now drowning in debt and stuck in an anemic growth orbit, and will continue to be this way since no government has pursued the deep reforms necessary to establish an economically strong Pakistan," he mentioned.
Hasan said Pakistan’s poor performance is their own fault, but their leaders conveniently blame their enemies and the IMF and the World Bank.
There is no doubt that the IMF/WB have often peddled “poorly thought out and one-size-fits-all” policies and bad loans but the deep hole that Pakistan is in is largely its own doing.
While corruption and the economic impact of terrorism have a role in the mess, for the most part the poor performance is a result of pursuing irresponsible, inappropriate and unpredictable policies, and half-hearted reforms.
The two most glaring examples of reckless policies were: excessive overspending by the government, financed by domestic and foreign debt; and imports far exceeding exports leading to unsustainable external debt.
He said Bangladesh’s successful journey is a good example, given the similarity in terms of religion, poor work ethics, messy politics, bad governance, weak public administration, high corruption, elite capture etc.
"In just two decades, Bangladesh has overtaken Pakistan on key economic indicators. Over the last 20 years, Bangladesh’s GDP per-capita increased 500 percent, two and a half times that of Pakistan. How did Bangladesh become a miracle story and Pakistan a disaster tale?"
The socio-economic development story of any country is complex and unique to that country.
Read: Iran bans flights from India and Pakistan
Bangladesh encouraged savings over consumption. Its savings rate is around 30 percent of GDP, compared to 15-20 percent for Pakistan.
Pakistan’s irresponsible and impulsive policies encouraged public spending and import consumption way beyond what the country could afford.
In 2000, Pakistan’s exports were 50 percent more than Bangladesh.
Since then, Bangladesh’s exports increased 700 percent, almost three and half times that of Pakistan.
In 2020, Bangladesh’s exports were almost twice that of Pakistan.
"Because of imprudent import and exchange rate policies, we have been foolishly incurring foreign commercial loans, deposits and bonds, at high interest rates, to finance unnecessary imports. A stark example of this bad policy was when we imported $3 billion of cars and phones and raised an equivalent number of Eurobonds," he said.
For most of the past two decades, Bangladesh’s fiscal deficit was around three percent of GDP, while Pakistan’s fiscal deficits were twice as high.
Over 20 years, Pakistan’s cumulative per-capita government spending was $4000, while Bangladesh was half of that.
Despite our per-capita spending being twice that of Bangladesh, our economic and human development indicators are worse than Bangladesh.
"We spent double for worse outcomes! Government spending in Pakistan has been reckless, based on the uninformed belief that higher spending leads to growth," Hasan said.
Read: Death toll from suicide car bombing rises to 5 in Pakistan
As a result of irresponsible fiscal and trade policies: (i) Pakistan’s public debt is now close to 600 percent of government revenues, twice that of Bangladesh; (ii) bank lending to the private sector is 200 percent in Bangladesh and 80 percent in Pakistan. Credit to the private sector is very restricted in Pakistan because of excessive government borrowings; and (iii) our external debt is 400 percent of exports, four times that of Bangladesh, Hasan said.
Pakistan’s FDI policies mostly encouraged investment in the service sector, where revenues are in rupees while liabilities in foreign currency. In comparison, Bangladesh aggressively promoted FDI in export manufacturing.
Bangladesh’s economic miracle also benefited from separation of religion from state, elimination of unelected institutions’ role in politics, and their leaders’ single-minded focus on Bangladesh, he said.
"It will hurt our national ego, but the only sure way for Pakistan to accelerate growth and reduce debt, and avoid seeking aid from Bangladesh, is to emulate Bangladesh. There is no shortcut to success, except to follow prudent fiscal and monetary policies," the article reads.
Helping poor in Bangladesh: WB approves $600 mn for 2 projects
The World Bank has approved $600 million for two projects in Bangladesh to help over 1.75 million poor and vulnerable populations.These two projects will include youths, women, disadvantaged groups, and returnee migrant workers to improve employability and livelihood opportunities and build their resilience against future shocks like the Covid-19 pandemic, according to a WB media release.The $300 million Accelerating and Strengthening Skills for Economic Transformation (ASSET) Project will equip more than 1 million youths and workers with skills needed for the future of work.
Read: 3 legal luminaries appointed from Bangladesh to WB's arbitration courtThe project will particularly support youths, women and disadvantaged groups, including people with disabilities to become skillful and to connect them to the labour market.The project will also support industries to retrain their workers during and after the pandemic and thus accelerate recovery.The $300 million Resilience, Entrepreneurship and Livelihood Improvement (RELI) Project will help improve the livelihoods of about 750,000 poor and vulnerable rural people across 3,200 villages in 20 districts.
Read: Govt, WB ink $250 mn deal to help Bangladesh create more jobsBoth projects have a maturity of 30 years, including a grace period of 5 years.“In Bangladesh, the Covid-19 pandemic has affected the livelihoods of thousands of people, particularly, female workers, youths, and returnee migrant workers,” acting World Bank Country Director for Bangladesh and Bhutan Dandan Chen said.
He said these two projects will help empower and mobilise rural poor people, prepare them for the future job market and support entrepreneurial opportunities, especially for women and disadvantaged groups.
Read Funding for vaccine procurement earmarked in deals with WB, ADB: Dr MeerjadyWorld Bank Team Leader for the Accelerating and Strengthening Skills for Economic Transformation (ASSET) Project Md. Mokhlesur Rahman said that Building on the success of earlier projects, ‘STEP’ and ‘NARI’,’ the project will help modernise and build resilience of the technical vocational education and training sector of Bangladesh.It will set up an international standard model polytechnic in the country.“Further, the project will benefit the informal sector workers through expanding the ‘Recognition of Prior Learning (RPL)’ program.”
Read: Bangladesh economy shows early signs of recovery amid uncertainties, says WB reportWorld Bank Team Leader for Resilience, Entrepreneurship and Livelihood Improvement (RELI) Project Jean Saint-Geours said the project will provide immediate and tailored livelihood support to rural poor people for responding to urgent needs such as the Covid-19 pandemic, improve their ability to cope with future shocks and help them come out of poverty through income-generating activities and skill development.The project will help organise village groups, build their capacity and finance community plans for savings and micro-loans, as well as climate-resilient infrastructure, giving priority to the poor and extreme poor, women, and youth.With over 90 percent female beneficiaries, the project will also support entrepreneurship and encourage crop diversification, good nutritional practices, while raising awareness of climate risk adaptation and mitigation, the spread of diseases, and gender-based violence.
Read Bangladesh’s GDP to increase by 3.6 % in 2020-2021, WB forecasts
3 legal luminaries appointed from Bangladesh to WB's arbitration court
The government has appointed three Bangladeshis to the prestigious Panels for Arbitrators and Conciliators of the World Bank's International Centre for Settlement of Investment Disputes (ICSID).
According to a statement, former Chief Justice MD Tafazzul Islam has been appointed in the Panel of Conciliators, while Professor of International Law at Dhaka University Dr Rumana Islam and Barrister Moin Ghani, who has represented Bangladesh in a number of ICSID cases, have been appointed in the Panel of Arbitrators.
Read $30m IFC loan to help Bangladesh cos stay afloat amid Covid
It also stated that they are appointed for a period of six years extending through 26 April 2027.
However, ICSID is an international arbitration institution for the resolution of disputes between foreign investors and States. It is part of the World Bank Group.
The ICSID maintains Panels for Arbitrators and Conciliators that may be used by the parties to a dispute, or in cases where the opposing parties are unable to agree on a nominee.
Read Govt, WB ink $250 mn deal to help Bangladesh create more jobs
The Panel of Arbitrators may also be used for appointment to ad hoc committees. However, Bangladesh has been a Member State to the ICSID Convention since 26 April 1980.
The procedural framework for arbitration and conciliation is provided by the ICSID Convention and the ICSID Additional Facility, and is further supplemented by detailed Rules and Regulations. The ICSID Arbitrators and Conciliators exercise their duties in accordance with those rules, with administrative support from the ICSID Secretariat.
Read Bangladesh inks over $1 b deal with World Bank for responding to COVID-19 pandemic
The members of the Panels serve for a term of six years, which can be renewed, as provided in Article 15(1) of the ICSID Convention.
$30m IFC loan to help Bangladesh cos stay afloat amid Covid
Industries hit hard due to the onslaught of the pandemic are all set to benefit from a $30 million World Bank loan to Bangladesh's BRAC Bank.
The loan from the International Finance Corporation, a member of the World Bank Group, will help both the small and medium-sized enterprises (SMEs) as well as large corporations in Bangladesh stay afloat amid the Covid-induced economic slowdown.
The investment will help to keep businesses open and preserve jobs, which is critical to sustaining the Bangladeshi economy, according to a release.
Also read: IFC supporting SMEs during pandemic
The package is, in fact, part of IFC's $8 billion global Covid-19 fast-track financing facility to support companies during the ongoing public health crisis. This new investment comes under the Working Capital Solutions (WCS) programme of the Covid-19 response envelope, which is providing $2 billion globally to emerging-market banks, enabling them to support struggling firms.
This project will also be supported by the International Development Association’s Private Sector Window Blended Finance Facility, which is also supporting IFC’s WCS programme with a first-loss guarantee of up to $215 million in eligible countries.
With the financing, BRAC Bank is expected to extend loans to its SME and corporate customers, supporting businesses that are now coping with a new wave of Covid-19 in Bangladesh.
“BRAC Bank promotes businesses of all sizes but as the pioneer of SME banking, we are particularly conscious of the needs of SMEs and micro-enterprises that play a vital role in driving economic growth and employment-generation,” said Selim RF Hussain, Managing Director and CEO of BRAC Bank.
“The Covid scenario is challenging and at the same time difficult for both banks and their SME and corporate customers. We hope that the partnership with IFC would help us to continue supporting the Covid-impacted businesses and help them recover.”
Also read: MSMEs, farmers to benefit from IFC Covid-19 support
SMEs make up over 90 percent of businesses in Bangladesh and employ over 20 percent of the adult population. Their cash flows have been heavily disrupted by the ongoing pandemic. An IFC survey last October showed nearly a third of workers in Bangladesh’s micro, small and medium sized enterprises were jobless at the time, due to the Covid-induced financial downturn.
“Clearly, the impacts of Covid-19 are continuing to exact a heavy toll on businesses trying to keep operating and keep staff employed,” said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal. “This finance line to our long-standing partner, BRAC Bank, is the most recent part of IFC’s effort to help Bangladesh build back better from the Covid-19 pandemic.”
In Bangladesh, IFC has provided a total of $260 million in working capital solutions to banks and liquidity support to companies since the beginning of the Covid-19 crisis, including this new funding to BRAC Bank.
Bangladesh's growth, govt efforts during pandemic praised
Nikkei Asia, in its recent article, praised Bangladesh's growth describing how the economy has boomed and exports soared.
The article also described how Bangladesh's economy has even exhibited resilience during the coronavirus pandemic and appreciated the government's timely stimulus packages and decision to reopen factories as early as May 2020.
The article titled "Bangladesh at 50: how the country has fared since independence" mentioned that since 1971, it has outstripped Pakistan in generating growth, with apparel exports and a surge in remittances helping to drive the economy.
Bangladesh marked the 50th anniversary of its independence from Pakistan "buoyed by economic progress and a relatively successful response to the coronavirus pandemic."
Also read: UK PM hails Bangladesh’s growth
But, the article suggested that the progress still needed to lift more of its 163 million people, 2% of the global population, out of poverty and highlighted challenges and concerns.
Bangladesh's growth rate exceeded 8% in 2019, according to World Bank data.
When the country seceded from Pakistan, its gross domestic product per capita was about three-quarters of Pakistan's; by 2019, it was almost 45% more.
Govt, WB ink $250 mn deal to help Bangladesh create more jobs
The World Bank and the government of Bangladesh on Thursday signed a $250 million financing agreement to help Bangladesh create more and better jobs, recover faster from the COVID 19 pandemic and build resilience to future crises.
The agreements were signed by Economic Relations Division secretary Fatima Yasmin and World Bank Country Director for Bangladesh and Bhutan Mercy Tembon on behalf of the Government and the World Bank, respectively.
The Third Programmatic Jobs Development Policy—the last in a series of three credits—focuses on key reforms to create quality and inclusive jobs, while supporting the government’s response to the COVID-19 crisis.
Also read: WB okays $250 million for Bangladesh to respond to COVID ...
It supports policies to modernize the trade and investment regime; improve social protection for workers; and help youth, women, and vulnerable people access quality jobs.
The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, has a 30-year term, including a five-year grace period.
“The COVID-19 pandemic has had a disproportionate impact on the poor and vulnerable population,” said Mercy Tembon.
Read Bangladesh inks over $1 b deal with World Bank for responding to COVID-19 pandemic
He said that this financing supports government policies to protect those most affected by the pandemic and create more and better jobs as Bangladesh continues its journey towards its vision of becoming an upper-middle income country.
The pace of job creation has slowed in recent years, and the COVID-19 pandemic has exacerbated the situation.
The Jobs Development Policy Credit series has helped the government protect 5 million jobs, and enabled firms to continue paying their workers’ wages.
Also read: World Bank prediction on Bangladesh economy inconsistent ...
Losses in jobs and income put livelihoods of several million at risk in both rural and urban areas. Women and youth have been particularly hard hit.
It also supported the migrant workers who have had to return to Bangladesh due to the pandemic. The program will also support informal micro-entrepreneurs in recovering by extending micro-finance facilities.
“The government has taken fast and proactive measures to protect the poor and vulnerable population and to mitigate the adverse impact of the COVID-19 pandemic on formal and informal businesses,” said ERD secretary Fatima Yasmin.
Read WB approves $500 mn to help Bangladesh vaccinate 54 mn people
The program has already resulted in reducing costs of starting a business; making the skills development sector more labor-market relevant; strengthening labor regulations for improved working conditions; and promoting quality daycare to enable more women to join the labor force, according to the press release.
With this program, total World Bank financing under the Programmatic Jobs Development Policy Credit series stands at $750 million.
Bangladesh currently has the largest ongoing IDA program totaling over $14 billion.
Read WB approves $200 million to help Dhaka support urban poor, migrants
Funding for vaccine procurement earmarked in deals with WB, ADB: Dr Meerjady
The government has signed deals with the World Bank and Asian Development Bank to get Covid-19 vaccine shots quickly, Dr Meerjady Sabrina Flora, additional director general of Health Services division, said.
The World Bank has agreed to provide $500 million to Bangladesh in additional financing to buy the Covid-19 vaccine shots, while ADB has agreed to give $940 million, she said on Wednesday at a virtual press conference from the Directorate General of Health Services (DGHS).
The $500 million World Bank loan for buying vaccine shots under the "Covid-19 Emergency Response and Pandemic Preparedness Project" will help Bangladesh vaccinate about 54 million people, the multinational lender said on Wednesday.
Also read: Bangladesh inks over $1 b deal with World Bank for responding to COVID-19 pandemic
Also, the World Bank said the project would help Bangladesh procure vaccines; expand storage facilities; and distribute and deploy the vaccines.
However, Sabrina said: "We are in touch with India's Serum Institute about vaccine supply, too. Also, the government is exploring alternative sources of Covid-19 vaccines. "
Sabrina hoped that Bangladesh would get COVAX vaccine doses fast.
Also read: WHO calls for prioritising vaccine contracts with COVAX
COVAX now has agreements in place to access nearly 2 billion doses of several promising vaccine candidates and laid the groundwork for further doses to be secured through contributions from donors, the World Health Organization (WHO) said on December 18, 2020.
"These agreements mean that all COVAX's 190 participating and eligible economies will be able to access doses to protect vulnerable groups in the first half of 2021."
"At least 1.3 billion donor-funded doses will be made available to 92 economies eligible for the Gavi COVAX AMC, targeting up to 20% population coverage by the end of the year," the WHO added.
Also read: ‘We sink or we swim together’: 5 things you need to know about COVAX
However, Sabrina also said: "If the local companies want to make the vaccine, the government will give them maximum support. The Health Minister Zahid Maleque has already visited the factories of several companies; they are making good progress."
Bangladesh inks over $1 b deal with World Bank for responding to COVID-19 pandemic
The government of Bangladesh signed three financing agreements totaling $1.04 billion with the World Bank to respond to the COVID-19 pandemic and to build resilience to future crises including vaccination against COVID-19.
The agreements were signed by Economic Relations Division secretary Fatima Yasmin and World Bank Country Director for Bangladesh and Bhutan Mercy Tembon on behalf of the Government and the World Bank, respectively.
The credits are from the World Bank’s International Development Association (IDA), and have a 30-year term, including a five-year grace period.
The $500 million additional financing to the COVID-19 Emergency Response and Pandemic Preparedness Project will help Bangladesh vaccinate about 54 million people against COVID-19, according to a WB press release issued on Wednesday.
Also read: Govt inks $100 mn grant deal with WB to support Rohingys, host communities
It said that it will help the government procure vaccines; expand storage facilities; and distribute and deploy the vaccines.
The project will also continue to provide support to strengthen the national health systems to detect, prevent, and treat COVID-19 cases as well for preparedness for future health emergencies.
The $500 million Private Investment and Digital Entrepreneurship (PRIDE) Project will promote and attract about $2 billion direct private investments and strengthen social and environmental standards in selected public and private economic zones and software technology parks.
It will develop the Bangabandhu Sheikh Mujib Shilpa Nagar II in Mirsarai-Feni and establish Dhaka’s first digital entrepreneurship hub in the Janata Software Technology Park and turn it into a green building.
Also read: WB, Bangladesh sign $200m deal for improved sanitation, water access
By creating more jobs and attracting domestic and foreign private investment, including in the IT and ITES sectors, the project will help the economy to rebound from the impact of COVID-19.
The $40 million Additional Financing to the Digitizing Implementation Monitoring and Public Procurement Project (DIMAPP) will help Bangladesh expand electronic government procurement (e-GP) to all public procurement entities with new features to respond to the COVID-19 challenges.
Last year, during the general holiday for the COVID-19 pandemic, e-GP played a critical role in continuing development works throughout the country.
To respond to the challenges of COVID-19 pandemic and any other future emergencies, the financing will help add features to the e-GP system, including international bidding, direct contracting, framework agreement, electronic contract management and payment, procurement data analytics, geo-tagging, and others.
“The COVID-19 pandemic continues to be an enormous challenge around the world. So far, Bangladesh has tackled the challenges well through fiscal stimulus and social protection programs. However economic recovery would depend on vaccination for those who need it most, and actions to increase efficiency and boost productivity,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
These projects, he said, will help vaccinate about one-third of the population, attract direct private investment in specialized economic zones and expand as well as upgrade the electronic government procurement system.
ERD secretary Fatima Yasmin said that these financings will help Bangladesh provide vaccination to mass people and thus help the economy to turn around and remain resilient.
Bangladesh currently has the largest ongoing IDA program totaling over $14 billion.
The World Bank was among the first development partners to support Bangladesh and has committed more than $35 billion in grants, interest-free, and concessional credits to the country since its Independence.
Bangladesh’s SHS provides clean energy for 20 million people
World Bank on Thursday launched a book, titled: "Living in the Light- The Bangladesh Solar Home System Story", a document of how off-grid solar electrification was mainstreamed to a large segment of the population living in rural areas.
Starting in 2003 as a 50,000 household pilot, the program at its peak, provided electricity to approximately 16 percent of the rural population.
Addressing virtually the book launching ceremony as the chief guest, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the government is committed to driving up renewable energy and has a host of incentives such as tax breaks on offer to drive net-metered solar rooftop installation.
He said the solar home systems (SHS) program has been critically important in achieving the ‘electricity for all’ vision.
Also read: Green energy in Bangladesh: Govt moves to save solar mini-grids
He noted that 99.8 percent areas of the country now has access to electricity and country will be electrified within the ‘Mujib-year’.
According to World Bank, Bangladesh has now the largest off-grid solar power program in the world, which offers experiences and lessons for other countries for expanding access to clean and affordable electricity.
By harnessing solar power, the program enabled 20 million Bangladeshis to access electricity, it said.
“Bangladesh is known for its innovative development approaches. In remote and hard to reach areas, the government successfully introduced affordable off-grid renewable energy solutions through a public-private partnership. Clean electricity meant better health and living conditions for families and more study time for children,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
“Our partnership with the government for this program spans nearly two decades, and now our support has expanded to include other renewable energy options."
Successive financing through the Rural Electrification and Renewable Energy Development (RERED) Project, the World Bank supported the Infrastructure Development Company Ltd (IDCOL) to implement the program.
Also read: Nasrul urges RMG owners: Go solar for low cost, tax break
IDCOL combined its expertise in infrastructure financing with Bangladesh’s pioneering work in micro-financing and private sector solar electrification initiatives to build a scalable off-grid electrification business model.
Between 2003 to 2018, the project reduced greenhouse gas (GHG) emissions by approximately 9.6 million tonnes of CO2 equivalent. The program helped reduce indoor air pollution by avoiding the consumption of 4.4 billion liters of kerosene, said the leading donor agency.
“The RERED I and II projects promoted a sustainable market-driven approach where clean energy solutions were provided by local entrepreneurs with financing from IDCOL. 58 non-government organizations supplied and installed the solar home systems made affordable with micro-loans,” said Amit Jain, Senior Energy Specialist, World Bank and a co-author of the report.
“The SHS Program demonstrated that millions of dollars mobilized at the international level can flow efficiently to the remotest corners of the country to offer loans in amounts as low as one hundred dollars, which enables a rural household to purchase a solar home system.”
Also read: Experts for re-fixing solar power generation target to 30,000 MW by 2041
Building on the success of the program, the World Bank extended support to scale up other clean renewable energy options including solar irrigation, solar mini-grids, roof-top solar, and solar farms. The World Bank financing in two consecutive RERED projects stands at $726 million.
The book analyzes the SHS Program’s organizational effectiveness, how partners were mobilized, how quality was enforced, how risks were mitigated, and how financial resources were raised and deployed as Bangladesh scaled up renewable energy use. It shares experiences and lessons that would be useful for other countries as they scale up solar off-grid electrification programs.