The World Bank today approved an additional tranche of $177 million for Bangladesh's power sector to increase reliable and low-cost electricity.

This additional finance will add new power generation capacity and increase efficient use of its scarce domestic gas supplies, said a WB press release.

The money will enable completion of the 335MW power plant at Siddhirganj – what was originally a 330MW plant later stepped up in face of demand and supply.

"Despite increased power generation capacity, Bangladesh still faces significant outages during the peak demand hours," said Martin Rama, acting World Bank country director for Bangladesh.

Inadequate power supply is affecting families, undermining competitiveness and hindering growth, she said in the press release.

The combined cycle plant, believed to be energy-efficient, will deliver at least 2.49 billion KWh annually, which accounts for 6 percent of the total electricity delivered to the national grid.