The 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.