A signing ceremony of a 30 MEUR loan agreement between Agence Française de Développement (AFD) and the Government of Bangladesh is held this morning at the Economic Relations Division (ERD). It an extension of the initial 100 MEUR financing provided to Dhaka Power Distribution Company (DPDC) to construct and modernize 14 electrical substations and the associated power lines for distribution network.
On behalf of Agence française de développement (AFD), HE Ambassador of France to Bangladesh Mr. Jean-Marin SCHUH and Jacky Amprou, Regional Director for South Asia and ERD Secretary Monowar Ahmad, on behalf of the government of Bangladesh, have signed the agreement in presence of Chief of Europe Wing (Ministry of Foreign Affairs), Additional Secretary Dr Gauranga Chandra Mohanta and Joint Secretary, Ali Hossain.
It is a parallel co-financing with Asian Development Bank under the Power Efficiency Programme. 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.