The government today (Sunday) signed a $177 million additional financing agreement with International Development Association (IDA) of World Bank (WB) to complete the ongoing construction of a 335-megawatt combined cycle power plant at Siddhirganj, near Dhaka.The power plant will account for 6.0 percent of the total electricity delivered to the national grid.IDA is the World Bank`s concessional arm that helps the world`s poorest countries. The additional financing to the Siddhirganj Power Project will help increase clean, reliable and low-cost electricity supply in Bangladesh.In 2008, World Bank provided $350 million to construct a 300-megawatt gas turbine power plant in Siddhirganj. In the face of increasing power demand and gas shortages, the government decided to convert the peaking power plant to an energy-efficient 335-megawatt combined cycle power plant. The additional financing will fill the financing gap for constructing the power plant."This additional financing will add much-needed new power generation capacity for Bangladesh. This financing will contribute to World Bank`s current support to the energy sector, raising it to over $1.5 billion," said Iffath Sharif, Acting World Bank Country Director for Bangladesh.The combined cycle technology allows the plant to produce higher energy with lower gas consumption. This cleaner technology reduces carbon emissions. The plant will start commercial operation in 2016."In the last few years, the country has increased its power generation capacity significantly. But, at the same time, the demand for electricity has gone up," said Kazi Shofiqul Azam, Additional Secretary, Economic Relations Division.He said the project would increase uninterrupted and low-cost power supply during the peak demand period, and thus help spur economic activities and reduce the cost of doing business in Bangladesh."In addition to financing the construction of the power plant, the project will also help strengthen the institutional capacity of the three implementing agencies: Gas Transmission Company Limited (GTCL), Electricity Generation Company of Bangladesh (EGCB), and Power Grid Company of Bangladesh (PGCB).The agreement was signed by Kazi Shofiqul Azam and Iffath Sharif, on behalf of the Government of Bangladesh and World Bank respectively at the Economic Relations Division.The credit from IDA has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent.