DHAKA, – A loan agreement worth 120 million Euro on the “Modernization of Power Distribution- Smart Grids Phase I” was signed today between the Economic Relations Division (ERD) and the KfW Development Bank of Germany.

The “Modernization of Power Distribution- Smart Grids Phase I” is a 120 million Euro project aiming at modernizing the distribution grid infrastructure in order to contribute to a safer and stable electricity supply.

The project will increase energy efficiency and reduce losses in order to achieve a reduction of greenhouse gas emissions. The project will be implemented by the Bangladesh Rural Electrification Board (BREB) and the West Zone Power Distribution Co. Ltd, said a press release.

ERD Secretary Fatima Yasmin and Carolin Gassner, Director South Asia, KfW Development Bank and Anirban Kundu, Director, KfW Bangladesh signed the Loan Agreement.

The signing ceremony was attended by senior officials from the ERD and the KfW Development Bank.

The loan will be repaid in 25 years with a grace period of 5 years.

Germany has been providing financial and technical assistance for the socio-economic development of Bangladesh since 1972. The present agreements are a continuation of development cooperation between the two countries.