B Mirror Report: A four-member World Bank delegation is in Bangladesh to discuss financing for energy imports, strengthening energy security and expanding investment in major infrastructure projects as the country grapples with rising fuel costs and foreign exchange pressures.
The delegation, led by Pankaj Gupta, regional director for South Asia Infrastructure at the World Bank, will meet senior government officials and representatives of various agencies during its visit from 3 to 7 October.
The discussions will focus on the power and energy sector, including financing for fuel imports, energy supply security, renewable energy, policy reforms, private investment and institutional capacity development.
The visit comes at a time when Bangladesh is facing growing pressure from elevated international energy prices and the high cost of importing LNG, fuel oil and coal. Heavy dependence on imported energy has also increased pressure on the country’s foreign exchange reserves and public finances.
Gayle H Martin, operations manager at the World Bank’s Dhaka office, informed Md Ahsan Kibria Siddiqui, additional secretary at the Economic Relations Division, about the delegation’s programme in a letter.
According to the letter, the delegation will examine ways to ensure affordable, reliable and sustainable energy supplies while reviewing the progress of existing World Bank-funded projects and discussing potential projects for future financing.
The cost of LNG imports is expected to remain a major issue in the discussions.
Petrobangla has been under financial strain as the cost of imported LNG has increased. Although Bangladesh has stepped up efforts to explore and produce domestic gas, imported LNG continues to play an important role in meeting the country’s energy requirements.
The Bangladesh Petroleum Corporation is also facing financial pressure due to higher international fuel and transportation costs. BPC officials said the corporation incurred losses of about Tk22,876 crore between March and August this year. The government has provided BPC with a Tk4,500 crore loan to support fuel imports and ensure uninterrupted supplies.
The World Bank has already increased its financial support for Bangladesh’s LNG procurement.
In May, the bank approved an additional $350 million under the Energy Sector Security Enhancement Project. This came after an initial $350 million project was approved in June 2025, bringing total World Bank financing under the initiative to $700 million.
The latest financing is supported by an International Development Association payment guarantee and is intended to strengthen payment arrangements for LNG imports. The financing will support standby letters of credit and short-term credit facilities while helping Bangladesh shift towards more predictable and longer-term LNG procurement.
Renewable energy and reforms in the energy sector will form another major part of the delegation’s discussions.
Bangladesh is seeking to improve energy security by increasing renewable energy generation, boosting domestic gas exploration and production and introducing reforms aimed at making the energy sector more financially sustainable.
The World Bank has supported several renewable energy initiatives in Bangladesh, including the Scaling-up Renewable Energy Project. The project supported the development of a 75MW grid-connected solar power plant in Sonagazi, Feni.
The bank has also provided financing and technical support for rooftop solar and rural renewable energy initiatives through the Infrastructure Development Company Limited.
The World Bank delegation will also hold discussions on major infrastructure projects beyond the energy sector.
Potential investment in Chattogram’s Bay Terminal development and the Dhaka-Chattogram Logistics and Transport Corridor is expected to feature prominently in the talks. Both projects are considered important to improving trade, transport and logistics connectivity.
The delegation will also review Bangladesh’s railway infrastructure development and strategic planning, inland water transport facilities and sustainable urban development initiatives.
Climate resilience is another area expected to receive attention, particularly measures to strengthen the capacity of cities and infrastructure to withstand climate-related risks.
Discussions will also cover land management, water resources management and institutional capacity building within local government institutions.
During the visit, the World Bank team is scheduled to meet officials from several key ministries and agencies, including the Ministry of Finance, Ministry of Power, Energy and Mineral Resources, Ministry of Road Transport and Bridges, Ministry of Railways, Ministry of Shipping, Ministry of Local Government, Rural Development and Co-operatives and Ministry of Water Resources.
Representatives of IDCOL and other government and private-sector institutions are also expected to participate in the discussions.
The visit is expected to help determine priorities for future World Bank financing and technical assistance in Bangladesh’s energy, transport, logistics, urban development and climate resilience sectors.
