Idcol to get €140.5 million from German bank

The Infrastructure Development Company Limited (Idcol) is all set to get €140.5 million from German Development Bank Kreditanstalt fur Wiederaufbau (KfW) -- €41 million for energy efficiency and €99.5 million for renewable energy projects.

The two parties signed two separate loan agreements, under which Idcol will be acting as the project executing agency to finance companies undertaking energy efficiency and renewable energy measures, according to a statement of Idcol.

The fund focusing on energy efficiency will be utilised for various purposes, including energy efficiency extensions or replacement of equipment and machinery, with a view to reducing final energy consumption and related carbon dioxide emission by at least 20 per cent.

The renewable energy concentrated fund will be used to finance solar irrigation, solar grid-tied, and biogas (domestic and commercial) projects, Idcol said in the statement.

The deal signing ceremony took place at the Westin Dhaka hotel today.

"I believe, separate agreement signing ceremony is the beginning of something extraordinary for Bangladesh," said Sharifa Khan, secretary of the Economic Relations Division and chairman of Idcol.

"KfW has been a long-term development partner for Idcol in financing renewable energy projects," said Alamgir Morshed, executive director and chief executive officer of Idcol.

"It is a great pleasure for us to continue the relationship for energy efficiency and renewable energy projects in Bangladesh. We hope to achieve greater things together for a better tomorrow."

"IDCOL has been a key implementing agency for the development of energy efficiency and renewable energy projects in Bangladesh. KfW is looking forward to working with Idcol in future projects," said Michael Sumser Hellstern, director of KfW Bangladesh.