DHAKA: The German Government signed an agreement with Bangladesh to provide €320 million euro for the energy transmission sector.

The government inked the pact to support renewable energy and energy efficiency of the Bangladesh power sector.

The signing ceremony was held between the Economic Relations Division of the Ministry of Finance of Bangladesh and KfW (the German Development Bank acting on behalf of the German Government) on Monday.

From this fund, a Financing Package of €60 million euro comprising of €15 million euro grant and a promotional loan of €45 million euro is being signed.

The money will be used for the modernization of the power transmission system, thus reducing transmission losses, equivalent to a saving of over 100,000 tonnes of CO2 emission per year.

The funds will be used in the Western Zone of Bangladesh, where parts of the population have very inadequate access to the power supply grid due to under-developed infrastructure.

The Chargé d’Affaires of the German Embassy Dhaka, Dr Ferdinand von Weyhe said “Today we are taking our relation as development partners to a new level.

This will be the first soft loan in our bilateral partnership. Business can develop. The CO2 footprint will be reduced. This will help us in our struggle to mitigate Climate Change“.

BDST: 2105 HRS, DEC 15, 2014