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Infrastructure Development Co. (IDCOL), a Bangladeshi state infrastructure investor, has received a loan of €80 million ($81.4 million) from Germany's KfW Development Bank to assist enterprises in installing solar plants and solar irrigation pumps.
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The KfW will sponsor the "Renewable Energy Programme II" project. The interest rate and other terms and conditions are currently being negotiated by the two parties.
IDCOL offers low-interest loans for the installation of solar home systems, residential biogas, solar irrigation, biomass, and biogas-powered electricity-producing plants. The non-bank lending agency is presently providing a variety of subsidies and concessionary loans to suitable renewable energy projects.
The World Bank, the Global Environment Facility (GEF), KfW, the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), the Asian Development Bank, and the Islamic Development Bank all provide financial support to IDCOL. The second phase of its Renewable Energy Programme will be implemented between 2023 and 2027, according to the company.
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According to Anirban Kundu, KfW's Country Director in Bangladesh, the €80 million loan is part of a €99.50 million financing package provided by KFW on behalf of the German government. It also includes an investment grant of €18.50 million and an accompanying measure grant of €1 million.
KfW has requested a commitment charge of 0.25% per annum on the un-disbursed loan amount, as well as a management fee of 0.10% flat on the overall loan amount, according to documents. It has provided two interest rate alternatives for the loan: a fixed interest rate of 2.73% per year or a floating (variable) interest rate. The loan payback period is up to 20 years, including a five-year grace period and 31 equal semi-annual installments.
Earlier, Germany’s state-owned development bank KfW released $203.8 million in the loan transfer so that Columbia can rollout renewable energy projects.
