The World Bank approved on Wednesday $292 million in loans to finance two infrastructure projects in Bangladesh, through its Investment Promotion and Financing Facility (IPFF).

The IPFF, operating since 2006, has helped boost Bangladesh's electricity generation capacity by 5 percent by adding 178 megawatts electricity to the national grid and two special economic zones at Dhaka and Chittagong.

Bangladesh currently faces up to 2,000 megawatts (MW) of electricity shortage a day that causes severe sufferings as well drastic fall in industrial production.

The IPFF operates under the oversight of Bangladesh's central bank and funds are allocated to local financial institutions for on-lending to private-sector infrastructure projects.

"Bangladesh has an enormous investment need in infrastructure," said Zafrul Islam, World Bank's acting country director for Bangladesh.

"We expect this financing ... will be used to increase infrastructure supply in the power sector - renewable energy and energy savings - as well as bridges, ports, container terminals, water treatment plants, waste disposal projects, and others," a World Bank statement quoted him as saying.

The credits from the International Development Association (IDA), the World Bank's concessionary arm, have 40 years to maturity with a 10-year grace period; they carry a service charge of 0.75 percent.