The government signed a 30 million euro credit facility agreement with France on Wednesday. The government of Bangladesh and Agency Francoise de Development (AFD), acting on behalf of France, signed the credit facility deal with an aim to provide additional funding for the ‘Construction of new 132/33 KV and 33/11 KV substations under DPDC Project’.
Economic Relations Division (ERD) Secretary Monowar Ahmed, AFD Regional Director for South Asia Jacky Amprou and French Ambassador to Bangladesh Jean-Marin Schuh signed the agreement on behalf of their respective sides, said an ERD press release. Dhaka Power Distribution Company Limited (DPDC) under the Power Division will implement the project under the Power System Expansion and Efficiency Improvement Investment Programme, co-financed by AFD and ADB, where the financing of AFD is 100 million Euro.
The project is divided into four lots as Lot 1 is 7 nos new 132/33 KV GIS Substations; Lot 2 is 7 nos new 33/11 KV GIS Substations; Lot 3 is 132 KV (158.4km) and 33 KV (113.4km) underground cable; while Lot 4 is 132 KV overhead transmission line (2.3km). The credit facility agreement of 30 million Euro was signed to cover the additional cost of Lot 1.
The additional funding will be repaid in 20 years including 7 years of grace period while the extension of the initial project financed by this agreement will allow new extension of substations and installation of additional equipment. France has been providing financial and technical assistance for the socio-economic development of Bangladesh. The country has a long history in supporting the water treatment, energy, transport and RMG sectors of Bangladesh, said the press release. The present agreement is a continuation of development cooperation between the two countries, it added.