100m Euros Fench loan for cleaner power network Dhaka

100m Euros Fench loan for cleaner power network Dhaka

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Agence Française de Développement (AFD), the French development finance institution, is going to provide loan worth 100 million Euros (equivalent to Tk850 crore) for establishing a stronger, more reliable and cleaner electricity network in Dhaka.
AFD’s financial contribution – a loan of 100 million Euros whose agreement will be signed on Sunday (June 1st 2015) with the Economic Relation Division (ERD) of the Ministry of Finance – will focus more precisely on strengthening the distribution network of South Dhaka.
French Ambassador Madam Sophie Aubert will attend the loan agreement signing ceremony to be held at ERD in the capital.
Under the Power System Expansion & Efficiency Improvement Investment Program AFD will fund the construction of 14 new transformer sub-stations – seven 132/33kV sub-stations and seven 33/11kV sub-stations – as well as associated electric lines. Dhaka Power Distribution Company (DPDC) will be responsible to implement this part of the project.AFD has teamed up with the Asian Development Bank (ADB), the European Investment Bank (EIB) and the Islamic Development Bank (IDB) to finance the Power System Expansion and Efficiency Improvement Investment Program (PSEEIIP). The objective of this ambitious project is to modernize and strengthen both production and distribution capacities of Bangladesh’s power system.
The Power System Expansion and Efficiency Improvement Investment Program matches AFD’s belief in a green and inclusive growth.
After the Greater Dhaka Sustainable Urban Transport Project (BRT – Bus Rapid Transit System) and the Dhaka Environmentally Sustainable Water Supply Project (Gandharbpur Water Treatment Plant), it constitutes the 3rd major project financed by AFD in Bangladesh.
The investments funded by AFD will significantly upgrade the capacity and the stability of DPDC network. The frequency of load-shedding in South Dhaka will be minimized and power distribution will become more predictable and reliable. It is estimated that the living conditions of 1.25 million households will be improved once AFD-funded project has been implemented.
The project also has an important social dimension. The combination of AFD and ADB’s efforts will help to reach 225,000 homes which are today deprived of legal electricity connection. This will stimulate the social and economic empowerment of these low-income communities.
Finally, AFD’s initiative will have a positive impact on the environment. Thanks to the reinforcement of the infrastructures, the quantity of power wasted away due to technical flaws will be drastically reduced. Consequently, less fuel and less gas will be necessary for the same energy requirement.
AFD, which opened its Dhaka office only two years ago and already sanctioned loans worth 190 million Euros to the Government of Bangladesh, is once again confirming its engagement to invest durably in the country.
The Agence Française de Développement (AFD) is a public development-finance institution that has worked for seventy years to alleviate poverty and foster sustainable development in the developing world and in the French Overseas Provinces. AFD executes the French government’s development aid policies.
Working on four continents, AFD has seventy-one field offices and bureaus, including nine in France’s overseas provinces and one in Brussels. The Agency provides financing and support for projects that improve living conditions, promote economic growth, and protect the planet.
In 2013, AFD committed EUR 7.8 billion to projects in developing and emerging countries and in the French Overseas Provinces. These AFD-financed projects will provide schooling for children, improve maternal health, support farmers and small businesses, and bolster access to drinking water, transportation and energy. These newly-funded projects will also help mitigate climate disruption by abating nearly 3.3 million metric tons of CO2-equivalent annually.
Dhaka Power Distribution Company is one of the largest distribution companies of Bangladesh. It is in charge of distributing electricity to the Southern part of Dhaka. It covers 21% of the total Dhaka region and provides about 2,000 MW of electricity per day. Its staff is composed of more than 3,800 workers. DPDC has been incorporated on 25th October 2005 under the Companies Act 1994 with an authorized share capital of Tk. 10,000 crore.
DPDC is actively working to meet the growing demand of power in Dhaka. When the company started its operation in 2007, the number of customers were 655,000 – by 2015, the number has now increased to over 925,000 and will rise even more after implementation of AFD-funded project, says a press release

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