Bangladesh's 50,000 SHS project finishes two years ahead of schedule

A micro-financing project aimed at selling 50,000 solar home systems (SHS) in Bangladesh celebrated the last installation under the project in August – that's over two years ahead of schedule (see PI 8/2002, p. 28). 

© Infrastructure Development Company Ltd. (IDCOL) Solar for education: A billboard advertises the benefits of using PV, financially supported through Bangladesh's 50,000 SHS program.

According to M. Fouzul Kabir Khan, CEO of the Infrastructure Development Company (IDCOL), which administrated the project on behalf of the World Bank's Rural Electrification and Renewable Energy Development project, this success has already led to an »in-principle agreement« among IDCOL and financing participants for an additional 140,000 installations under the program. That next phase of the project has yet to be finalized. 

In the 50,000 SHS project just ended, the World Bank's International Development Association supplied $11.44 million in credit, the Global Environmental Facility supplied $6.67 million in grants, participating organizations contributed $3.69 million, and households paid $3.2 million in down payments. An additional 20,000 systems will be installed under this program phase from savings accrued during the project, which was in part possible through not relying heavily on foreign consultants. »We avoided, to the extent possible, foreign consultants primarily because of their high fees and charges,« says Khan.

Garrett Hering
© PHOTON International, October 2005