Huge increases in electricity demand, averaging more than 13% annually in 2001-2008, had accompanied the rapid economic growth of the People’s Republic of China (PRC) in the years leading to the project appraisal in 2009. As supply could not keep pace with demand, power shortages became rampant in some areas.
Intensive coal production for local industrial and residential consumption as well as to generate electricity exports to other provinces has brought about severe air pollution in the Inner Mongolia Autonomous Region (IMAR) in the People’s Republic of China (PRC).
Despite remarkable progress during the previous decade, only about a third of Bangladesh’s households had access to electricity in 2005. The country had been suffering from unreliable power supply because of insufficient generation capacity, an inadequate transmission grid, and unbalanced distribution facilities.