The French Agency for Development (AFD) will grant 12 million euros to supply quality and uninterrupted electricity to the customers under the area of Dhaka Power Distribution Company Limited.
The grant financing will be used for construction and augmentation of substation and installation of capacitor bank in the power system under the DPDC project.
Fatima Yasmin, secretary, Economic Relations Division, Ministry of Finance, and CHASSATTE Benoit, country director, AFD, signed the grant agreement in Dhaka on behalf of their respective sides, said a press release issued on Tuesday.
The grant is a supplement to the loan of €100 million which was previously signed between Bangladesh and AFD to finance a similar project.
The project started from July 1, 2020, and it will continue till June 30, 2023. The main objective of the project is to supply quality and uninterrupted electricity to the customers under the DPDC area and improve power supply at 132kv, 33kv and 11kv voltage levels.
The AFD is a bilateral development agency implementing official development assistance on behalf of the French government.
The agency has been in operation in Bangladesh since 2012. It supports development projects in various sectors like urban development and infrastructure (water and sanitation, public transport, urban services), power and green energy (energy efficiency, renewable power), corporate and social responsibility (enhancement of safety standards and environmental and social performance).
The agency provides concessional sovereign loans and mobilises grants under the regional blending facility of the European Union.
