The French Development Agency (AFD) and the Bangladesh government have inked a grant financing agreement of 12 million euros (USD 1,45,34,400) to back advanced digital solutions in the power and energy sector in Bangladesh.

The pact is part of a larger multi-donor project involving the joint commitment of AFD and the European Union (EU), for a total investment of €112 million (USD 13,56,04,000), Bangladeshi news agency UNB reported.

The project, called Power Factor Improvement and Smart Grid under Dhaka Power Development Company (DPDC) Dhaka, Bangladesh is the first-ever smart grid project in Bangladesh and will be implemented over the next five years, said a media release.

EU Ambassador to Bangladesh Rensje Teerink said the European Union is committed to supporting Bangladesh in adopting advanced digital solutions in power distribution, because of sector decarbonization.

Through this project, 1,141,000 people will benefit from a significant improvement in the quality of electricity service.

It will also prevent an accumulated 104,000 tons of CO2 emissions per year, thereby contributing to Bangladesh’s climate goals.

(SAM)