An additional $177 million (£120m) is being provided for a power project in Bangladesh.
The government signed an agreement with the World Bank’s International Development Association (IDA) to complete the construction of a 355MW combined cycle power plant at Siddhirganj, near Dhaka.
It will account for 6% of the total electricity delivered to the national grid, according to the World Bank.
In 2008, it provided $350 million (£236m) for a 300MW gas turbine power plant but due to increasing power demand and gas shortages, the government decided to convert it to an energy efficient plant.
The combined cycle technology allows the plant to produce higher energy with lower gas consumption and reduce carbon emissions.
Kazi Shofiqul Azam, Additional Secretary, Economic Relations Division, Government of Bangladesh said: “In the last few years, the country has increased its power generation capacity significantly but at the same time, the demand for electricity has gone up. The project will increase uninterrupted and low cost power supply during the peak demand period and thus help spur economic activities and reduce the cost of doing business in Bangladesh.”
The plant is expected to start commercial operation next year.