Reliable energy supply for Bangladesh: KfW finances power grid improvements and the continued electrification of the country

• EUR 140 million to finance power transmission networks and substations
• Overcoming the energy bottlenecks — requirement for sustainable economic growth
• Important contribution towards energy efficiency and climate protection
• Highest loan ever issued to Bangladesh

As part of the 49th annual conference of the Asian Development Bank (ADB) in Frankfurt am Main, KfW on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) signed a loan agreement for EUR 137.5 million (plus a grant of EUR 2 million from the budget funds for investment-related technical support). This is the highest KfW low-interest loan that has ever been approved for an individual project in Bangladesh.

It will be used to finance the construction of up to eleven substations including connection to the grid, as well as the construction and reinforcement of more than 200 km of power transmission lines across the entire country. These priority investments will strengthen the capacity and efficiency of the Bangladeshi power transmission grid. They contribute towards energy-saving operations and overcoming the energy bottlenecks. They also contribute significantly towards enhancing the climate and environmental compatibility of the Bangladeshi energy sector.

"Economic sustainable growth is supported by a reliable and efficient energy supply as well as the planned complete electrification of Bangladesh by 2021, contributing considerably towards improving the living and working conditions of the population. Supplying clean energy benefits companies, private households and public organisations," says Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

In 2014 already, KfW issued both a loan and a grant to Bangladesh totaling EUR 60 million to finance power transmission lines. Other donors such as the Asian Development Bank are financing complementary system components including the expansion of the transmission station to the Indian grid.

Further information on KfW Development Bank is available at

www.kfw-entwicklungsbank.de