Renewable Energy Program IDCOL - Interest subsidy

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The FC module aims to improve access to renewable energy for primarily productive use (module objective). To this end, a credit line is to be set up with the Infrastructure Development Company Limited (IDCOL) to promote the financing of end loans for investments in grid-connected PV systems, particularly on rooftops (component A). In addition, investment cost subsidies are provided for investments in decentralized, particularly off-grid renewable energy (RE) projects. In this context, mini-grids, solar irrigation pumps and domestic and commercial biogas plants can be financed (component B). The project thus makes a contribution to the economic, ecological and socially fair provision and use of energy in Bangladesh (DC program objective). The target group of the FC measure are companies of rural users (groups) in Bangladesh. When the electricity generated by the PV systems is fed into the grid, all of the end customers reached by the national supply system benefit. The FC project sponsor is the state financial intermediary IDCOL, a long-standing implementation partner of German development cooperation. As part of the FC measure, individual measures are financed by IDCOL and refinanced by the German FC contribution. The borrower is the People's Republic of Bangladesh, represented by the Ministry of Finance. The estimated total cost of the program is around EUR 193 million. The FC contribution totals up to EUR 70 million. Up to EUR 60 million is to be made available to the People's Republic of Bangladesh in the form of a low-interest loan. In addition, a grant of EUR 8.5 million is to be made available, particularly to support off-grid investments. A grant of EUR 1.5 million for an accompanying measure completes the FC financing.