Germany to provide 10.5m Euro for renewable energy

Germany will provide 10.5 million Euro (equivalent to Tk 1.13 billion) to Bangladesh for the 'productive use of renewable energy programme' in the country's remote areas.

German donor agency KfW on Tuesday signed an agreement to this effect with the Economic Relations Division (ERD), the Ministry of Finance in the city, reports UNB.

As per the deal, the Infrastructure Development Company Limited (IDCOL) will implement a project under the programme in between February 2014 and December 2018.

ERD Additional Secretary Mansur Md Faizullah, KfW Country Director David Kunze and IDCOL chief executive office Mahmud Malik were present on the occasion.

Officials at the programme said the main objective of the project is to ensure the productive use of renewable energy in remote areas.

They expect that the project will promote income-generating activities in rural areas as well as relieve environmental stress through reducing carbon emissions. They also believe that the scheme will contribute to the government's vision of rural electrification.

The target group of this programme includes people living in rural and pre-urban areas who are without or with insufficient access to modern energy services, they said adding that it will help small and medium enterprises use renewable energy for commercial purposes across the country.

KfW has been supporting Bangladesh since 1972 in energy, renewable energy, health, nutrition and population sectors.