European Investment Bank (EIB) has committed to providing EUR 350 million in framework loans to support renewable energy projects in Bangladesh, according to a press release of the Ministry of Finance.
On the sidelines of the 58th Annual Meeting of the Asian Development Bank (ADB), Bangladesh has strengthened its cooperation with key international financial partners through high-level bilateral meetings.
Finance Adviser Dr Salehuddin Ahmed, held a bilateral meeting with Nadia Calvino, President of the European Investment Bank (EIB) on Sunday focusing on expanding EIB's ongoing support in Bangladesh's priority sectors.
The EIB, as the primary lending institution of the European Union (EU), has been engaged in Bangladesh since 2000 under a framework agreement with the government.
To date, EIB has invested about EUR 635 million in six ongoing projects across the health, water supply, transport, and communication sectors.
Although its core focus is on EU Member States, the EIB plays a vital role in EU development cooperation with over 160 countries worldwide, particularly in areas such as climate action, innovation, infrastructure, SMEs, and skill development.
The EU will also contribute an additional funding of EUR 45 million in grant. These projects are aimed at enhancing environmental sustainability and contributing to climate change mitigation and adaptation, aligning with Bangladesh's sustainable development goals (SDG).
During the discussion, the Finance Adviser emphasized the urgent need for greater investment in human capital and infrastructure development to address the dual challenges of graduating from Least Developed Country (LDC) status and avoiding the middle-income trap.
He called on the EU and its institutions to provide enhanced concessional or subsidized financing in strategic sectors critical to Bangladesh's development trajectory.
The Finance Adviser also held a bilateral meeting with representatives of Japan Bank for International Cooperation (JBIC) which has long been a valued partner in Bangladesh's development journey through financing and strategic collaboration.
Notable investments include the DAP-II Fertilizer Plant (USD 715.6 million, now fully repaid), the Ghorasal Fertilizer Plant, and the Meghnaghat Power Plant (USD 265 million, co-financed with ADB).
Additionally, the Bangladesh delegation held bilateral meetings with Yingming Yang, Vice President (South, Central, and West Asia) of ADB, the Vice President of the OPEC Fund, and Professor Michael Kremer, Vice President of The Agriculture Innovation Mechanism for Scale (AIM for Scale).
Issues of mutual interest were discussed by both parties in these meetings.
