Germany will provide grant funds of about 320 million Euro to support renewable energy and energy efficiency of the Bangladesh’s power sector.
Bangladesh and Germany signed an agreement in this regard on Monday, reports BSS.
The funds will be used to improve power transmission sector of the Western Zone of Bangladesh, where half of the population gets very inadequate access to power supply grid due to under-developed infrastructure.
This money will also be used for the modernisation of the power transmission system, thus reducing transmission losses, equivalent to a saving of more than 100,000 tonnes of CO2 emission per year.
The efficiency gains from this project alone will be big enough to provide electricity to nearly 2,00,000 additional households.
After the signing ceremony, chargé d'affaires of the German Embassy in Dhaka Dr Ferdinand von Wey said with the implementation of the project, many people in the western parts of Bangladesh will now have electricity following reduction of transmission losses.
"This will also help us in our struggle to mitigate climate change", he added.
The preparation and implementation of the infrastructure works will be accompanied by highly professional consulting services, and is due to start immediately after signing the Financing Package with the preparation of the procurement processes of goods and services, the release said.
This project is to be implemented by the state-owned utility Power Grid Company of Bangladesh (PGCB), it added.
