The Agence Française de Développement (AFD) has announced a €100 million climate policy loan for Bangladesh in 2027 and €40 million in support for the water supply and sanitation sector in 2028.
The announcements came at the 7th Annual Consultation Meeting (ACM) between AFD and the Government of Bangladesh, held in Paris on November 9-10, according to a handout issued on Thursday.
During the meeting, both sides signed an amendment to the agreement on the Expertise and Capacity Building Fund (FERC).
The meeting reviewed bilateral cooperation, AFD’s existing project portfolio and strategic priorities, including ongoing and pipeline projects in line with the government’s development agenda.
Under the future commitment roadmap, the two sides also agreed to expand cooperation during 2029-2030 into new strategic areas, including technical and vocational education and training (TVET), skills development and non-sovereign financing.
The Bangladesh side highlighted the priorities outlined in the 5th Five-Year Strategic Framework for Development and Reform (2026-2031), stressing the need for support in macroeconomic stability, capital market development, skills development, job creation, river restoration, climate resilience, low-carbon infrastructure and renewable energy.
It also sought financial and technical assistance for policy-based loans and balanced regional development.
The AFD side said Bangladesh’s priorities were largely aligned with its own strategies and expressed willingness to continue cooperation in line with the country’s development needs.
AFD also reaffirmed its commitment to supporting Bangladesh’s climate resilience through a stronger focus on climate and adaptation, backed by its range of financing tools and technical expertise.
AFD currently has total commitments of US$1,754.81 million, equivalent to €1,484.76 million, across 12 ongoing development projects in Bangladesh.
Of the total commitment, US$1,736.19 million is in loans and US$18.62 million in grants.
The meeting was co-chaired by Economic Relations Division Secretary Md Shahriar Kader Siddiky and AFD Head of Department for Europe, Middle East and Asia Cyrille Bellier.
AFD Country Director Cynthia Mela and senior officials of the agency, along with representatives of the Bangladesh government, attended the meeting.