In 2022, the Government of People’s Republic of Bangladesh (GoB) and Kreditanstalt für Wiederaufbau (KfW), the German state-owned development bank, signed a loan agreement of up to EUR 80 million along with a grant agreement of up to EUR 2 million to implement the project ‘Energy Efficiency in the Industry (EEI)’. GoB will channel a loan portion of up to EUR 40 million and a grant portion of up to EUR 1 million to BIFFL, one of the project-executing agencies, for implementation of this project.
The purpose of the project is to extend refinancing facility of sub-loans to industrial companies, including Small and Medium Enterprises (SMEs), for investment in energy efficient extensions and/or replacements of equipment and machinery as well as production processes which shall, in each case, realize a final energy consumption and associated CO2 reduction by at least 20%. As such, this project will contribute to an economically, ecologically, and socially sustainable use of energy in Bangladesh.
The grant portion will be used for the expert services that will help ensure capacity building and pipeline development of BIFFL, conducting eligibility assessments and monitoring of sub-loans and supporting BIFFL in maintaining Environmental and Social (E&S) requirements.