AFD and EU finance an innovative project on the digitization of the electricity grid in Bangladesh through Dhaka Power Distribution Company (DPDC)
DHAKA 8 December 2020 The French Development Agency (AFD), has agreed to provide a 100 million euro loan to the Government of the People’s Republic of Bangladesh to reinforcing its role as an active participant in the search for and use of advanced digital solutions in power and energy sector in Bangladesh. This support comes via AFD’s concessional sovereign loan and will go towards financing project titled Construction and Augmentation of Substation and Installation of the Capacitor Bank in Power System under DPDC’.
A credit facility agreement from AFD worth 100 million Euros was signed today Ms. Fatima Yasmin, Secretary, Economic Relations Division, Ministry of Finance and Mr. Benoit Chassatte, AFD Country Director for Bangladesh, with His Excellency Mr. Jean-Marin Schuh, Ambassador of France to Bangladesh as co-signatory. In addition to that a Grant Facility Agreement for a delegated grant from the EU-AIF worth 12 million euros world be signed in the beginning of 2021.
AFD’s loan aims to equip existing infrastructure with these new, innovative and reliable technologies in order to ensure services are prepared for the future. Moreover, by integrating digital technology in our projects, we speed up the adoption of renewable energies and thus contribute towards achieving the country’s Sustainable Development Goals (SDGs). The additional 12 million euro grant will support for piloting the smart grid project in 5 substations in Dhaka. The smart grid gives shape to this transformation, by making the grid more effective and efficient.
A total of 1,141,000 people will benefit from a significant improvement in the quality of electricity service through the project and it helps fight climate change by preventing an accumulated 104,000 tons of CO2 emissions per year.
About the French Development Agency
French Development Agency (AFD), the world’s oldest development agency, is public and solidarity-based development bank aims to help build ‘a world in common’. AFD Group is a central actor in France’s Development policy and supports state, companies, local authorities and NGOs. It operates in a number of sectors (energy, health, biodiversity, water, urban planning, and capacity development) and offers a wide range of financial and non-financial services. The main priority is to fight against climate change and poverty, and help stabilize fragile or post-crises crisis countries to fight against. Through its network of 85 agencies, AFD operates in 108 countries, where it is currently financing, monitoring and supporting over 2500 projects.
In Asia and the Pacific, AFD promotes green and inclusive growth and low carbon economic. Climate is at the core of AFD’s strategy in South Asia where or project expected to offer no less than 70% climate co-benefit.
Present in Bangladesh since 2012, AFD supports projects in urban development and infrastructure, as well as in the power & green energy sectors. In addition, AFD also focusses on corporate and social responsibility. As of 2020, AFD has committed 910 million euros to Bangladesh including 24 million euros in the form of grants.
Mamun SA Al Abdullah – firstname.lastname@example.org – 01819149415