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

Frankfurt am Main (ots) -

- 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.

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Dr. Charis Pöthig,
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: charis.poethig@kfw.de, Internet: www.kfw.de