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Dhaka Friday,  Mar 29, 2024

IDCOL to Finance Solar Irrigation Project of Rangpur

EB Report

A Financing Agreement was executed between Infrastructure Development Company Limited (IDCOL) and Solargao Ltd. whereupon the latter had undertaken to set up thirty four solar irrigation pumps, all in Badarganj upazila of Rangpur district. IDCOL will provide the necessary financing for the project in the form of grant and concessionary loan under IDCOL Renewable Energy Program.
The beneficiaries under the said project would be 605 farmers who would be able to irrigate a total of 4,110 bighas of land year round once the project becomes operational. The farmers of the area have shown huge interest in the project since this would allow them to avail water for irrigation at a much lower rate than they are currently having to pay for diesel run irrigation pumps.

Solargao Ltd., a private limited company, has been working as a supplier for solar irrigation pumps in Bandarganj, Rangpur. While IDCOL, a fully government owned NBFI that celebrated the installation of 3 million Solar Home Systems in the presence of the Prime Minister just a few days back is set to promote alternative solutions to energy crisis of the country. Both parties share the common vision of turning Badarganj upazila into the first diesel irrigation free upazila of the country.

The total cost of the said project is BDT 43.50 million out of which IDCOL will provide 40% as soft loan and 40% as grant The fund for grant and loan will be sourced from Department for International Development (DFID) and The World Bank respectively. IDCOL has received fund for such renewable energy projects from The World Bank, JICA, kfW, DFID, USAID and Bangladesh Climate Change Resilience Fund (BCCRF).

IDCOL has a target of financing 1,550 solar irrigation pumps by 2017 and 50,000 by 2025 with an ultimate gaol of replacing most of the diesel operated pumps in rural Bangladesh.

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