DHAKA: The Government of Bangladesh and World Bank Thursday signed a $600 million credit to improve the quality of electricity supply for 25 million people in the rural areas of the eastern part of the country.

The credit for the Rural Electricity Transmission and Distribution Project (T&D) which will support construction of new lines and new substations, while upgrading existing lines in the rural areas of Dhaka, Chittagong and Sylhet divisions, to reduce system losses and enhance the capacity of the rural electricity network.

Economic Relations Division (ERD) Secretary Mohammad Mejbahuddin and Acting Head, World Bank Bangladesh Christine E Kimes signed the deal on behalf of their respective party at ERD premises.

The rural electrification program of Bangladesh is recognized globally as one of the most successful programs in the world.  

However, over the years the transmission and distribution network has become overstretched.  

This project will provide support for upgrading the network as well as strengthening the institutional capacity of the rural electricity service delivery. 

The project will be implemented by the Bangladesh Rural Electrification Board (BREB) and the Power Grid Company of Bangladesh (PGCB).

The credit has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.

BDST: 1925 HRS, JUN 19, 2014