Bangladesh and the French Development Agency (AFD) have signed a €140 million future‑financing roadmap that will target climate‑resilience measures, improvements to water supply and sanitation, and the development of skills programmes.
The roadmap was presented at the seventh Annual Consultation Meeting between the Economic Relations Division of the Ministry of Finance and AFD, held at the agency’s headquarters in Paris on 9–10 November.
Under the roadmap, AFD will provide a €100 million climate policy loan in 2027 and €40 million for the water supply and sanitation sector in 2028.
The two sides also agreed to explore cooperation in new strategic sectors during 2029–2030, including Technical and Vocational Education and Training (TVET), skills development and non-sovereign financing.
During the meeting, both sides signed an amendment to the agreement on the Expertise and Capacity Building Fund (FERC).
A two‑day consultation examined Bangladesh’s current development portfolio and matched future project pipelines with the government’s priorities and development agenda, a press release said.
The Bangladesh delegation was led by ERD Secretary Md Shahriar Kader Siddiky. The AFD delegation, meanwhile, was headed by Cyrille Bellier, who serves as head of the agency's Department for Europe, the Middle East and Asia.
Talks centred on bringing development cooperation into line with the Fifth Five-Year Strategic Framework for Development and Reform (2026–2031).
The Bangladesh delegation highlighted the need for financial and technical support in areas including macroeconomic stability, capital market development, job creation, river restoration, low-carbon infrastructure, renewable energy, policy-based lending and balanced regional development.
AFD officials voiced their support for the priorities, stating that Bangladesh's development goals were closely aligned with the agency's institutional strategies.
The French development agency also reiterated its commitment to supporting Bangladesh's climate resilience through its Climate and AdaptAction initiatives, specialised financing instruments and technical expertise.
AFD currently has a portfolio commitment of $1,754.81 million, equivalent to approximately €1,484.76 million, across 12 ongoing projects in Bangladesh.
Of the total commitment, $1,736.19 million is in sovereign loans and $18.62 million in grants.
The consultation was also attended by AFD Country Director Cynthia Mela, senior agency officials and representatives of the Bangladesh government.
Why it matters
The financing will bolster Bangladesh's climate resilience and improve water and sanitation services for millions.