The French Development Agency (AFD) will provide a loan of 12 million euros to Bangladesh to finance the ‘Construction and Augmentation of Substation and Installation of the Capacitor Bank in Power System under DPDC Area’ Project.
Fatima Yasmin, Secretary, Economic Relations Division, Ministry of Finance and Chassatte Benoit, Country Director, AFD signed the grant agreement on behalf of the Government of Bangladesh and AFD respectively, said a press release.
It is to be noted that the grant is supplemented to the loan of 100 million euro which has previously been signed between Bangladesh and AFD to finance the similar project.
The main objective of the project is to supply quality and uninterrupted electricity to the customers under the DPDC area and to improve power supply at 132 Kv, 33Kv and 11 Kv voltage levels.
In addition, the project will contribute to improve reliability, electric power supply and demand balance by augmentation of substations and introduction of smart grid system under DPDC.
The Agency Francaise De development (AFD) is the bilateral development agency implementing official development assistance on behalf of the French Government.
The agency provides concessional sovereign loans and mobilizes grants under the regional blending facility of the European Union.