It is a parallel co-financing with the Asian Development Bank under Power Efficiency Program, according to the French Embassy in Dhaka
The government on Wednesday signed a 30-million Euro (MEUR) loan agreement with Agence Francaise de Developpement (AFD) related to the additional financing of the power supply expansion and efficiency improvement investment program implemented by Dhaka Power Distribution Company (DPDC).
This is an extension of the initial 100 MEUR financing provided to the DPDC to construct and modernize 14 electrical substations and the associated power lines for distribution network, said a press release.
French Ambassador to Bangladesh Jean-Marin Schuh and Regional Director for South Asia Jacky Amprou signed the credit facility agreement on behalf of the AFD while Economic Relations Division (ERD) Secretary Monowar Ahmad represented the government at the signing ceremony held at the ERD premises.
It is a parallel co-financing with the Asian Development Bank under Power Efficiency Program, according to the French Embassy in Dhaka.
This additional financing will cover extra costs related to the purchase and commissioning of new equipment and the increased cost of raw materials.
The project as a whole will improve the quality of energy distribution for 241,000 households or 1.1 million people.
Access to good-quality electrical energy will have a major positive impact on living conditions, education and health.
The upgrading of the electrical network will allow DPDC to provide energy with a lower emission factor and will reduce the carbon footprint of the diesel generators.