The French Development Agency (AFD), has agreed to provide a 100 million euro loan to the government for reinforcing its role as an active participant in providing advanced digital solutions to power and energy sector in of country.
This support comes via AFD's concessional sovereign loan and will go towards financing a project titled 'Construction and Augmentation of Substation and Installation of the Capacitor Bank in Power System under DPDC', said a press release issued by AFD on Tuesday.
Secretary at the Economic Relations Division of Ministry of Finance Fatima Yasmin and AFD Country Director for Bangladesh Benoit Chassatte signed the credit facility agreement worth 100 million Euros on behalf of their respective organisations.
Ambassador of France to Bangladesh Jean-Marin Schuh was also present as co-signatiory of agreement.
The media release also added 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 the existing infrastructure with new, innovative and reliable technologies in order to ensure that service providing mechanisms remain future proof, the release said.
Moreover, by integrating digital technology to the projects, AFD aims to speed up the adoption of renewable energies and thus contribute towards helping the country achieve its Sustainable Development Goals (SDGs) milestones.
The additional 12 million euro grant will aid in piloting the smart grid project in 5 substations in Dhaka. The smart grid systems will help make the grid more effective and efficient, the release added.
AFD stated that a total of 1,141,000 people will be benefited from a significant improvement in the quality of electricity service through the project.
At the same time it will help fight climate change by preventing an accumulated 104,000 tons of CO2 emissions per year, the release added.