The Agence Française de Développement (AFD) has announced a €100 million climate policy loan for Bangladesh in 2027 and €40 million in support for the water supply and sanitation sector in 2028.
The announcements were made at the 7th Annual Consultation Meeting (ACM) between AFD and the Bangladesh government, held in Paris on November 9-10, according to a handout issued on Thursday.
During the meeting, the two sides signed an amendment to the agreement on the Expertise and Capacity Building Fund (FERC).
They also reviewed bilateral cooperation, AFD's existing project portfolio and strategic priorities, including ongoing and proposed projects aligned with the government's development agenda.
Under a future commitment roadmap, both sides agreed to expand cooperation in 2029-2030 into new strategic areas, including technical and vocational education and training (TVET), skills development and non-sovereign financing.
The Bangladesh delegation highlighted the priorities outlined in the 5th Five-Year Strategic Framework for Development and Reform (2026-2031), emphasising the need for support in macroeconomic stability, capital market development, skills development, job creation, river restoration, climate resilience, low-carbon infrastructure and renewable energy.
It also sought financial and technical assistance for policy-based loans and balanced regional development.
The AFD delegation said Bangladesh's priorities were largely aligned with its own strategies and expressed willingness to continue cooperation in line with the country's development needs.
AFD also reaffirmed its commitment to supporting Bangladesh's climate resilience, with a stronger focus on climate action and adaptation, backed by its financing instruments and technical expertise.
AFD currently has total commitments of $1,754.81 million, equivalent to €1,484.76 million, across 12 ongoing development projects in Bangladesh.
Of the total, $1,736.19 million is in loans and $18.62 million in grants.
The meeting was co-chaired by Economic Relations Division Secretary Md Shahriar Kader Siddiky and AFD Head of Department for Europe, Middle East and Asia Cyrille Bellier.
AFD Country Director Cynthia Mela and senior officials of the agency, along with representatives of the Bangladesh government, attended the meeting.