Economy

Bangladesh to get €477 million from EU as agreements signed

Published: 15:35, 26 October 2023

Bangladesh has recently entered into significant agreements with the European Investment Bank (EIB) and the European Commission in Brussels, paving the way for the country to receive a substantial €477 million in loans and grants.

These agreements encompass three key arrangements among Bangladesh, EIB, and EC, with the primary focus on channeling €407 million as a combination of loans and grants to bolster the renewable energy sector in Bangladesh.
Additionally, Bangladesh is set to benefit from an additional €70 million in grant funding through five separate agreements. Of this grant, €30 million is allocated for technical and vocational training, while €10 million each is designated for initiatives promoting decent work, e-governance, the prevention of gender-based violence, and green construction.
The signing ceremony took place at the European Commission Headquarters in Brussels, Belgium, where Bangladesh's Prime Minister, Sheikh Hasina, joined EC President Ursula von der Leyen and EIB President Werner Hoyer in witnessing the momentous occasion.
The first agreement, titled 'Bangladesh Renewable Energy Facility,' was inked between Bangladesh and EIB. This agreement involves an EU-guaranteed framework loan of up to €350 million, aimed at supporting climate action investments in Bangladesh.
The second agreement was signed between EIB and EC, resulting in an EU blending grant of €45 million. This grant is divided into two components: €6 million earmarked for technical assistance to ensure that all sub-projects adhere to international market practices and comply with EIB's environmental and social standards, and €39 million designated as an investment grant. This investment grant will introduce concessional lending tools, contributing to the development of the first utility-scale renewable energy projects in Bangladesh.
These agreements underscore the commitment of the European Union to support Bangladesh's endeavors in the renewable energy sector and various vital areas, ultimately fostering sustainable development and economic growth in the country.