Germany to bankroll Bangladesh’s power transmission upgrade
Deals signed on €139.5m in loans, grants
Germany is providing 139.5 million euros in loans and grants to Bangladesh to improve its power transmission system.
Bangladesh and KfW Development Bank of Germany signed two agreements in Germany on Wednesday to support the improvement of power transmission.
Mohammad Mejbahuddin, senior secretary of the Economic Relations Division, and Claudia Arce, KfW’s director for South Asia, signed the deals, the German Embassy in Dhaka said in a statement yesterday.
The ceremony was attended by Finance Minister AMA Muhith and Hans-Joachim Fuchtel, parliamentary state secretary of the German federal ministry for economic cooperation and development.
The financing package consists of a concessional loan of 137.5 million euros and a grant of 2 million euros.
It is the single biggest project that is being supported financially by the German government for Bangladesh, according to the statement. The project prioritises the extension of existing and construction of new transmission lines and substations across Bangladesh.
The purpose of the project is to contribute to a reliable and efficient supply of electricity in the national grid by improving the 230 kV and 132 kV transmission systems.
After signing the agreement, both sides expressed that the existing friendly relation between the two nations will reach new heights in the days ahead.
Germany has a long history of supporting the energy sector of Bangladesh, providing strategic assistance for socio-economic development since cooperation began in July 1972, soon after independence of the country.
In the last six years, Bangladesh has doubled its power generation capacity and actual production, but it still faces issues with its transmission lines.