France to fund power distribution network

France will provide a loan of 100 million euros for a project in South Dhaka to modernise and strengthen the production and distribution capacities of Bangladesh's power system.

Agence Française de Développement (AFD), the French development finance institution, will provide the loan to establish “a stronger, more reliable and cleaner electricity network” in Dhaka, AFD and the Bangladesh government said in a joint statement yesterday.

Under the power system expansion and efficiency improvement investment programme, AFD will fund construction of seven 132/33kV sub-stations and seven 33/11kV sub-stations as well as the associated electric lines.

An agreement to this effect will be signed in Dhaka on Monday between AFD and the Economic Relations Division. French Ambassador Sophie Aubert will attend signing ceremony to be held at ERD.

The AFD has teamed up with Asian Development Bank, European Investment Bank and Islamic Development Bank to finance the project that is to be implemented by the Dhaka Power Distribution Company (DPDC), according to officials of the power division.

The investments funded by AFD will significantly upgrade the capacity and stability of the DPDC network.

The frequency of load-shedding in South Dhaka will be minimised and power distribution will become more predictable and reliable, according to the statement.

It constitutes the third major project financed by AFD in Bangladesh after the Greater Dhaka Sustainable Urban Transport Project (Bus Rapid Transit System) and the Dhaka Environmentally Sustainable Water Supply Project (Gandharbpur Water Treatment Plant).