PHOTON International The Photovoltaic Magazine

Bangladesh seeking 64,000 SHS following World Bank project approval

On July 16, the government of Bangladesh signed an agreement with the World Bank for a project that in part should lead to the installation of 64,000 SHS over five years.

The Rural Electrification and Renewable Energy Development project (RERED), a $191 million program for extending the grid approved by the Bank at the end of June, includes $20 million for the purchase of 50,000 solar home systems (SHS) and another 14,000 on a fee-for-service basis (see PI 5/2002, p. 34).

The Dhaka-based Infrastructure Development Company (IDCOL), a government-owned financial institution funded by the Bank, has been contracted to administer the 50,000 SHS. It is currently approving microfinancing institutions to give out $400 subsidy grants per household for SHS which will be purchased by customers through monthly payments. The microfinancing institutions will be able to choose PV equipment approved by an IDCOL technical standards committee. M. Fouzul Kabir Khan, IDCOL's CEO, says the equipment procurement process will be opened to any company »as long as they meet our standards.« So far, approval has been given to Shell Solar, Kyocera Corp., Tata BP Solar India Ltd., Isofoton, AstroPower Inc., and Atersa for modules, and to Steca GmbH and PT Sundaya Indonesia for charge controllers.

Another $5.6 million will be available for the country's Rural Electrification Board (REB) to distribute 14,000 SHS on a fee-for-service basis. Khan says REB will be sending out requests for bids, but did not say when. REB did not respond to questions.

Fouzul Kabir Khan
idcol@dhaka.agni.com