Bangladesh secures €100m climate loan, €40m for water, sanitation

The Agence Française de Développement (AFD) has announced a €100 million climate policy loan for Bangladesh for 2027 alongside €40 million in financing for the country's water supply and sanitation sector in 2028 under the future commitment roadmap.

Furthermore, during the 2029-2030 periods, cooperation will be expanded into new strategic sectors including Technical and Vocational Education and Training (TVET), skill development, as well as non-sovereign financing.

The announcement came from the 7th Annual Consultation Meeting (ACM) between the Agence Française de Développement (AFD) and the Government of Bangladesh (GOB) which was held on November 9-10 at AFD Headquarter in Paris, France, said an ERD press release today.

The cooperation between the GOB and AFD, the existing portfolio, and strategic issues were reviewed in the 7th ACM. The AFD-supported ongoing projects and pipeline projects were discussed in line with the new development agenda and the priorities of the government.

During the meeting, the amendment of the Expertise and Capacity Building Fund (FERC) agreement was signed between the both sides.

With particular reference to the Five Year Strategic Framework for Development and Reform (2026- 2031) and ongoing development priorities of the current government, the Bangladesh side emphasized on macroeconomic stability, capital market development and the need for financial and technical support in areas of skill development, job creation, river restoration, climate resilience, low-carbon infrastructure, renewable energy, policy-based loans, and balanced regional growth.

The AFD side endorsed the requests from the Bangladesh side, mentioning that the needs are quite aligned with the strategies of AFD, and as such, they are willing to continue the collaboration in line with the discussed priorities and needs of Bangladesh.

Further, the AFD side assured that the Group will remain committed to a more focused agenda on Climate and AdaptAction with a variety of tools and expertise in order to support Bangladesh in its resilience.

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The AFD continues to be a trusted partner of Bangladesh, offering financial assistance in undertaking macro-level development projects.

At present, AFD has a total commitment of US$ 1,754.81 million (equivalent to Euro 1,484.76 million) across 12 ongoing development projects, comprising US$ 1,736.19 million in loans and US$ 18.62 million in grants.

The 7th Annual Consultation Meeting was co-chaired by Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division of the Ministry of Finance, and Cyrille BELLIER, Head of Department, Europe Middle-East and Asia, AFD.

AFD Country Director Cynthia Mela and other senior officials of AFD, and representatives from the Government side, were present in the meeting.