The World Bank (WB) will provide Bangladesh with an additional $30 million to help the country build up its power transmission network in eastern regions.

The funds will be used for an ongoing project that aims to enhance and strengthen power transmission in greater Cumilla, Chattogram and Noakhali, according to the Economic Relations Division (ERD).

ERD Secretary Md Shahriar Kader Siddiky and WB Acting Country Director Gayle Martin yesterday signed an agreement to this end, said a press release from the finance ministry division tasked with boosting domestic socioeconomic development.

Power Grid Bangladesh PLC is implementing the project aiming to ensure a reliable supply and meet the growing demand for electricity in Cumilla, Chattogram and Noakhali, it added.

The initial financing agreement for this project, amounting to $450.64 million, was signed on April 10, 2018, under the Scale Up Facility of the WB.

However, $50 million was subtracted from the total funds and repurposed for initiatives aimed at combatting the fallouts of Covid-19.

Now, Bangladesh needs another $30 million from the multilateral lender to successfully complete its efforts to improve power delivery in eastern regions, the ERD said.

With a grace period of five years, the country was given a repayment period of 30 years for the loan.

The loan's annual interest rate has been set at 1.25 percent while its service charge is 0.75 percent and maximum commitment charge is 0.5 percent.

However, the World Bank has decided to waive the commitment charge this year, it added.