AFD in Bangladesh


AFD is an inclusive public financial institution and the main actor of France’s development policy. It supports projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories. 

AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world: A World in Common. Its action is fully in line with the Sustainable Development Goals (SDGs). 

Through its network of 85 agencies, AFD operates in 115 countries and is currently supporting over 4,000 development projects. In 2018 and under the Paris Agreement to make all-out efforts in order to combat climate change impacts, AFD’s commitments are reaching 11.4 billion Euros with 4.8 billion Euros in commitments with a climate co-benefit as well as 1.6 billion Euros in 2018 committed for climate change adaptation projects (thus doubling the amount financed in 2017).

Since 2012, AFD and Bangladesh have worked together to develop low-carbon infrastructures and to promote access to essential services for the population. AFD acts through loans and also mobilizes European funding, in the form of grants. AFD’s goal is to support green and inclusive growth in Bangladesh.

AFD’s commitment to Bangladesh

AFD has been working in Bangladesh since May 2013, with a mandate to promote a green and inclusive growth. Over the past six years, the expected cumulative commitment will be 610 million Euros by end of-2019.

With a mandate matching the Bangladeshi government’s priorities, AFD’s interventions are based on the following areas of cooperation: 

In order to encourage sustainable urban mobility, AFD is supporting Dhaka for the development of smoother and  lower-carbon mobility with the financing of a fast, high-capacity bus line that will link the north of the city to the airport on a dedicated lane. This project will improve the agglomeration's productivity and ensure better accessibility to urban jobs and equipment for the entire population.

AFD supports the Dhaka Water Authority to improve access to drinking water for all and sustainable management of water resources. AFD is financing two water treatment plants and the connection of 20 slums to the public water supply network through local NGOs in the field. From those projects, 5 million inhabitants will benefit from a more efficient water service and nearly 4 million additional inhabitants will be connected to the network. The environmental impact will also be important, thanks to a much lower pressure on the underground water.

To strengthen the electricity distribution networks, AFD is financing a project to modernize and to extend the power grid of the DPDC distribution company in Dhaka. This project will provide a more stable power supply and reduce CO2 emissions per kWh. AFD is also accompanying DPDC on its path to Smart Grids by financing through a grant from the European Union, a pilot and demonstrative program to strengthen capacity and support scale up of smart grid operations in Bangladesh. Finally, in the near future, AFD will also work with DPDC to fulfill its needs to improve the energy network by installing reactive power compensation devices. The project allows a significant reduction of system losses and voltage drops.

The RMG sector accounts for 80% of the country exports and employs nearly 5 million people. For the promotion of CSR in the textile industry, AFD, together with the European Union and the German institutions KfW and GIZ, is supporting a program that helps factories to invest in safety, as well as social and environmental standards of factories.

More recently, AFD started financing renewable energy and energy efficiency projects across the country with IDCOL - Infrastructure Development Company Limited, a government owned non-bank financial institution that finances renewable infrastructure projects. 

 Website : http://www.afd.fr/en/page-region-pays/bangladesh

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