The Economic Relations Division on Monday signed a €60 million loan agreement with the German Development Bank or kfW to improve the western power grid system.
The kfW, which represents the German government, would provide €45 million in loan at 2.5 per cent interest and €15 million in grant, officials said. The contract was signed under a German commitment of providing a total of €320 million for the modernisation of the power transmission system to reduce transmission losses, they said.
The officials estimated that the reduction in power transmission loss would save more than 100,000 tonnes of carbon-dioxide (CO2) emission a
year or the saved electricity would meet the demand of some 200,000 rural people in the western region.
An official of the Power Grid Company of Bangladesh told New Age that the authorities would spend the fund in expanding and upgrading the existing transmission lines, construction of new transmission lines and extension and construction of sub-stations in the country’s western region.
-With New Age input
