Paris:Bangladesh has secured a £100 million climate policy loan from the Agence Française de Développement (AFD) for 2027, alongside £40 million earmarked for the country's water supply and sanitation sector for 2028. This financial agreement is part of a future commitment roadmap outlined by the AFD.
According to Bangladesh Sangbad Sangstha, the announcement was made during the 7th Annual Consultation Meeting (ACM) between the AFD and the Government of Bangladesh (GOB), which took place on November 9-10 at the AFD Headquarters in Paris, France. The meeting served as a platform to review the cooperation between the AFD and GOB, existing portfolios, and strategic issues.
The discussions highlighted plans for expanding cooperation into new strategic sectors such as Technical and Vocational Education and Training (TVET), skill development, and non-sovereign financing during the 2029-2030 period. The two parties also signed an amendment to the Expertise and Capacity Building Fund (FERC) agreement.
Bangladesh emphasized the importance of macroeconomic stability, capital market development, and the need for financial and technical support in various areas, including skill development, job creation, river restoration, climate resilience, low-carbon infrastructure, renewable energy, and balanced regional growth. AFD endorsed these requests, aligning them with its own strategies and committing to a focused agenda on climate and AdaptAction.
Currently, AFD has a total commitment of US$ 1,754.81 million (equivalent to €1,484.76 million) across 12 ongoing development projects in Bangladesh, comprising US$ 1,736.19 million in loans and US$ 18.62 million in grants.
The meeting was co-chaired by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division of the Ministry of Finance, and Cyrille Bellier, Head of Department, Europe Middle-East and Asia, AFD, with the participation of AFD Country Director Cynthia Mela and other senior officials.