The world bank will provide a $257m loan to help Bangladesh’s power industry overcome its energy shortages, it has been revealed.

World Bank Bangladesh country director Ellen Goldstein told Reuters that inadequate power supply costs Bangladesh as much as 2% in GDP growth each year.

“Bangladesh can overcome energy shortage within the next three to four years through institutional capacity building and strong commitment from the government,” Goldstein said.

Goldstein suggests importing hydroelectricity from Nepal and Bhutan to provide up to 24,000MW of electricity as an affordable and cost-effective option for Bangladesh.

Currently, Bangladesh suffers shortages of up to 1,500MW of electricity each day.