DHAKA: The government has signed a loan agreement with Asian Development Bank (ADB) and German government of 310 million dollars and 10.5 million euros respectively for the development of electricity in the country.

The deal was signed by Joint Secretary of Economic Relations Department (ERD) Saifuddin Ahmed and Resident Mission in-charge and Deputy Country Director of ADB Stefan Ekelund at the conference room of Planning Commission at capital’s Sher-e-Bangla Nagar on Tuesday.

ADB is funding to Bangladesh with a view to implement the second phase of Power System Expansion and Efficiency Improvement Program.

The high officials of Dhaka Power Distribution Company, Power Grid Company and DESCO also signed the project implementation agreement.

In the contract signing ceremony, Saifuddin Ahmed admitted the loan as the highest financial allowance from ADB to Bangladesh. He also briefed about the Power Generation, Transmission and Distribution system.

On the other hand, Stefan Ekelund said that around 1.6 million dollars is being funded by multi donors in the power development field of Bangladesh.

The other major donating organizations in this category include Islamic Development Bank (IDB), European Investment Bank (EIB) and French Agency for Development (AFD).

Meanwhile, Additional Secretary of Economic Relationship Department Abul Mansur M Foyej Ullah and German government’s representative David Kunje singed a contract of loan of 10.5 million euros.

County’s Economic Relationship Department sources said that the loan of ADB to be refunded within 25-year with a five-year grace period benefit.

The time period of the Power System Expansion and Efficiency Improvement Program project is from February 2014 to the end of 2018.

On April 3, 2013, a deal of 18.50 crore US dollars was signed in the first phase of the project.

The main goal of the project is to ensure innovative usage of renewable energy in an ecology friendly method in the remote areas of the country.

BDST: 1830 HRS, FEB 11, 2014