The government on Monday signed an agreement with the World Bank for $10 million grant to introduce solar irrigation pumps for farmers.
Arastoo Khan, additional secretary, Economic Relations Division and Christine Kimes, acting head, World Bank in Bangladesh signed the deal on behalf of their respective sides.
This grant will support the solar irrigation project under which over 1,300 solar powered irrigation pumps will be installed covering more than 65,000 bighas of land for rice cultivation. The project will be financed by the Bangladesh Climate Change Resilience Fund, an innovative multi-donor financing mechanism.
The solar irrigation pumps will provide farmers’ access to clean energy at a comparatively lower cost, replacing the traditional diesel fired irrigation pumps for rice cultivation.
By replacing diesel pumps with solar irrigation pumps in areas where grid electricity has not reached, the project will reduce dependence of farmers on diesel supply, which is often erratic and costly, particularly in remote rural areas.
Reliance on costly diesel imports for irrigation puts a pressure on country’s foreign exchange. The 1300 solar irrigation pumps will save $3.2 million in foreign currency every year from displacement of diesel.
‘Wider use of solar powered irrigation pumps will help Bangladesh to save foreign exchange in diesel imports. The project will also reduce carbon emission by 10,000 tons every year.’ said Christine Kimes.
Private sponsors will be responsible for installing, operating and maintaining the solar irrigation pumps. BCCRF will provide up to 50 per cent of the pump costs in grant, while International Development Association of the World Bank will provide 30 per cent in concessionary credit. Private sponsors are expected to provide 20 per cent of the pump costs as equity.
‘The project directly contributes to government’s climate change adaptation vision.’ said Arastoo Khan.
BCCRF has provided $10 million grant in first phase for the solar irrigation project and the total commitment amount for project is $24.5 million in grant financing.
The Infrastructure Development Company Limited will implement the solar irrigation project through private sponsors as part of the Rural Electrification and Renewable Energy Development II Project.
-With New Age input
