German development agency KfW Development Bank will provide 120 million euro loan to Bangladesh for improving power distribution system.
Bangladesh government signed a loan deal with KfW Development Bank for the financing at an event held at Economic Relations Division (ERD) in Dhaka on Monday.
It is a 120 million euro project aiming at modernising the distribution grid infrastructure in order to contribute to a safer and stable electricity supply and is part of German development cooperation.
Economic Relations Divisions Secretary Fatima Yasmin, KfW Development Bank South Asia Director Carolin Gassner, and KfW Bangladesh Director Anirban Kundu signed the loan agreement.
The project will increase energy efficiency and reduce losses in order to achieve a reduction of greenhouse gas emissions; and will be implemented by the Bangladesh Rural Electrification Board and the West Zone Power Distribution Co Ltd, the press release added.
The signing ceremony was attended by senior officials from the Economic Relations Division and the KfW Development Bank.
Germany has been providing financial and technical assistance for the socio-economic development of Bangladesh since 1972. The present agreements are a continuation of development cooperation between the two countries, the press release further added.