Dhaka, June 19 -- The World Bank's Board of Executive Directors has approved two projects totalling $640 million to support Bangladesh in enhancing its gas supply infrastructure and improving air quality.

The Energy Sector Security Enhancement Project ($350 million) will help improve gas supply security by facilitating access to cost-effective financing for Petrobangla, a state-owned company, according to a World Bank press release.

The project will utilise an IDA guarantee to mobilise up to $2.1 billion in private capital over seven years for new Liquefied Natural Gas (LNG) imports. The backing of an IDA guarantee will improve Petrobangla's creditworthiness to secure LNG supplies.

Imported LNG accounts for over one-fourth of total gas...