Germany Commits €191 Million for Bangladesh's Sustainable Development

06 Sep, 2023

Germany Commits €191 Million for Bangladesh's Sustainable Development

In a significant development, Germany has pledged a substantial sum of 191 million euros to Bangladesh to support the nation's sustainable development efforts. Two bilateral agreements on Development Cooperation were officially signed today between the Governments of Bangladesh and Germany, building on the commitments made during the last government negotiations in December 2022.

The agreements encompass a total of 191 million euros, approximately equivalent to Taka 2215 crore, with 55 million euros designated for Technical Cooperation (TC) and 136 million euros allocated for "Financial Partnership (FC), as delineated in an official announcement."

The signing ceremony highlighted the participation of senior officials from the Government of Bangladesh and the German Embassy in Dhaka, alongside representatives from the key implementing organizations."German Development Cooperation: GIZ for Technical Assistance and KfW for Financial Support

The projects covered under these agreements span a wide spectrum, focusing on Green and Just Energy Transition, Sustainable Urban Development, Sustainable Supply Chains, Biodiversity, Women Empowerment, and support for Host and Displaced Communities in Cox's Bazar.

Technical Cooperation Agreement Projects:

Policy Advisory for Promoting Energy Efficiency and Renewable Energy (Up to 4 million euros)
Energy Efficiency and Grid Integration of Renewable Energy II (Up to 2 million euros)
Advanced Vocational Training and Promotion of Employment for Female Textile Workers (Up to 5 million euros)
Energy Efficiency for Sustainable Development (Up to 7 million euros)
Professional Education in Industrial and Environmental Safety (Up to 7 million euros)
Innovations for Climate-Smart Urban Development (Up to 7 million euros)
Program for Sustainability in the Textile and Leather Sector II (Up to 5 million euros)
Vocational Training in the Field of Renewable Energy (Up to 5 million euros)
Supporting the Localization of National Climate Adaptation Targets (Up to 3 million euros)
Socio-economic support for Host and Displaced Communities in Cox's Bazar (Up to 5 million euros)
Strengthening the National Network of Protected Areas in Bangladesh through Advancing Digital Technology and citizen Science, Fostering Participation of Women and Youth Involvement, and Enhancing Inter-Department Cooperation (Up to 5 million euros)

Financial Cooperation Agreement Projects:

Climate Change Adapted Urban Development Programme, Phase V (UCRIP II) (Up to 114.5 million euros, including 100 million preferential loans)
Climate Change Adapted Urban Development, Phase VI (Up to 21.5 million euros)

It's worth noting that Germany has been providing both financial and technical assistance for Bangladesh's development since 1972, with a cumulative contribution exceeding 3 billion euros. This cooperation has spanned diverse areas, including climate change adaptation and mitigation, infrastructure development, poverty alleviation, good governance, human rights, energy efficiency, renewable energy transition, and assistance to Rohingya and host communities in Cox's Bazar district.

These newly inked agreements mark a continuation of successful bilateral cooperation and are poised to significantly contribute to achieving the Sustainable Development Goals (SDGs) and the Climate Goals outlined in the Paris Agreement. The Federal Republic of Germany administers its technical and financial cooperation activities in Bangladesh through three key institutions: GIZ, KfW Development Bank, and BGR. Currently, the German government is financing 23 projects, consisting of a total contribution of 452.5 million euros in loans and 161.054 million euros in grants.

In addition to the mentioned agreements, another significant Technical Cooperation project on 'Strengthening Access to Justice and Legal Reforms (SAJLeR)' was also signed between Bangladesh and Germany. The project, with a total fund allocation of 12.422 million euros, will be executed by the Ministry of Law, Justice, and Parliamentary Affairs. The primary objective of this project is to implement new reform approaches within the justice sector, ensuring that a broader segment of the Bangladeshi population, particularly the poor, women, and children, can access accountable, efficient, and effective justice services."