The German Government commits 15.3 million euros for the development of local small and medium enterprises in partnership with the government and lender CB bank
23 Jun 2017The German Government last week committed 15.3 million euros for the development of local small and medium enterprises in partnership with the government and lender CB Bank.
In the first phase of the SELP program between CB Bank and German development bank KfW, 4.5 million euros, approximately $5 million, will be made available in grants to SMEs as a loan from the ministry of finance to CB Bank, reads a press release.
“SME development is considered as one of the most viable means to create employment, well-being as well as sustainable economic development,” Dr. Christine Heimburger, KfW Director, East for Asia and Pacific, told the audience at the SELP program launch party.
Another 10.85 million euros worth funding for the program will be based on a joint selection process by the Ministry of Planning and Finance and KfW, read the statement.
On the same day of the launch of SELP, KfW met with representatives of the transport and agriculture ministries to sign over 14 million euros for rural electrification projects and upgrades to one of the country's major locomotive workshops.
Of the funds, 9 million euros, approximately $10 million, will be used to install 19,000 Solar Home Systems in rural areas of Shan State which have not yet been connected to the power grid. The project will provide access to energy for up to 30,000 people, read a press statement.
A further 5 million euros will go towards the upgrade of the Ywa Htaung diesel locomotive workshop and training centre near Mandalay.
The funds will see the refurbishment of selected locomotives at the 30 year old workshop and upgrades to the training materials at the vocational training centre next door, read the statement.
Under the agreed terms and conditions, the 40 year loan has 30 year payback period with an interest rate of 0.75 percent per year.
(Myanmar Business Today: http://www.mmbiztoday.com/