Infrastructure Development Company Limited (Idcol) signed two agreements with German development bank Kreditanstalt für Wiederaufbau (KfW) yesterday to avail a loan of €140.5 million. 

Of the fund, €41 million is for the disbursement of loans among companies undertaking energy efficiency projects and €99.5 million for renewable energy projects.

In a statement, Idcol said it would be acting as the projects' "executing agency". The energy efficiency fund will focus on methods such as extensions or replacement of equipment and machinery to reduce final energy consumption and related carbon dioxide emission by at least 20 per cent.

The renewable energy fund will focus on solar irrigation and solar grid-tied and biogas (domestic and commercial) projects.

"KfW has been a long-term development partner for Idcol in financing renewable energy projects," said Alamgir Morshed, executive director and chief executive officer of Idcol, at the signing ceremony in The Westin Dhaka.

"Idcol has been a key implementing agency for the development of energy efficiency and renewable energy projects in Bangladesh. KfW is looking forward to working with Idcol in future projects," said Michael Sumser Hellstern, director of KfW Bangladesh. Sharifa Khan, secretary to Economic Relations Division and chairman of Idcol, was present.