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The Agence Française de Développement (AFD) has announced €100 million in climate policy loans for Bangladesh in 2027 and another €40 million for the country’s water supply and sanitation sector in 2028 under its future commitment roadmap.
Cooperation will also be expanded in 2029-2030 to include technical and vocational education and training (TVET), skills development and non-sovereign financing.
The announcements were made at the seventh Annual Consultation Meeting (ACM) between AFD and the Government of Bangladesh, held on November 9-10 at the AFD headquarters in Paris, according to a press release issued by the Economic Relations Division (ERD).
The meeting reviewed bilateral cooperation, AFD’s existing portfolio and strategic issues, while discussing ongoing and pipeline projects in line with the government’s development agenda and priorities.
During the meeting, both sides also signed an amendment to the agreement on the Expertise and Capacity Building Fund (FERC).
Referring to the Five-Year Strategic Framework for Development and Reform (2026-2031) and the government’s ongoing priorities, the Bangladesh delegation highlighted the need to ensure macroeconomic stability, develop the capital market and secure financial and technical assistance in several areas.
These include skills development, job creation, river restoration, climate resilience, low-carbon infrastructure, renewable energy, policy-based loans and balanced regional development.
The AFD delegation expressed support for Bangladesh’s requests, saying the priorities were largely aligned with the agency’s strategies. It also reaffirmed its willingness to continue cooperation in line with the country’s development needs.
AFD further assured Bangladesh of its commitment to a stronger focus on climate and adaptation, offering a range of financing instruments and technical expertise to strengthen the country’s resilience.
AFD remains a key development partner of Bangladesh, providing financial support for major development projects.
The agency currently has total commitments of US$1,754.81 million, equivalent to €1,484.76 million, across 12 ongoing development projects. Of the total, US$1,736.19 million is 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 under the Ministry of Finance, and Cyrille Bellier, head of the Europe, Middle East and Asia Department at AFD.
AFD Country Director Cynthia Mela, senior officials of the agency and representatives of the Bangladesh government also attended the meeting.
