The European Investment Bank (EIB), lending arm of European Union (EU), has approved a €350 million framework loan to support renewable energy projects in Bangladesh, in a significant move to help the country meet its sustainable development goals.
Complementing the loan is a €45 million grant from the EU, intended to reinforce efforts in environmental protection, climate change mitigation and adaptation, according to a statement from the Finance Ministry on Monday.
The announcement was made following high-level bilateral meetings held during the 58th Annual Meeting of the Asian Development Bank (ADB), where Bangladesh strengthened its engagement with key international financial partners.
On Sunday, Finance Adviser Dr Salehuddin Ahmed met with EIB President Nadia Calviño to discuss ongoing and future collaborations. The discussions highlighted the need for increased investments in renewable energy, human resource development, and infrastructure to help Bangladesh navigate its post-LDC graduation transition and avoid the middle-income trap.
“This partnership with the EIB is a crucial step towards expanding our renewable energy capacity and addressing the climate vulnerabilities we face,” said Dr Salehuddin.
The EIB, which has had a framework agreement with Bangladesh since 2000, has so far invested around €635 million in six ongoing projects spanning health, water supply, transport, and communication sectors.
While primarily focused on EU member states, the EIB plays a critical global role, supporting development cooperation initiatives in over 160 countries. Its priorities include climate action, green infrastructure, SMEs, and innovation.
In addition to the EIB engagement, the Bangladesh delegation also held bilateral meetings with key international financiers, including the Japan Bank for International Cooperation (JBIC), ADB Vice-President Yingming Yang, the OPEC Fund Vice President, and Professor Michael Kremer of the Agriculture Innovation Mission for Climate (AIM for Climate).
JBIC’s notable support for Bangladesh includes financing for the DAP-2 Fertilizer Factory (€715.6 million, now fully repaid), Ghorashal Fertilizer Factory equipment, and the Meghna Ghat Power Project (€265 million, co-financed with ADB).
The Finance Ministry emphasized that the country is seeking more concessional and grant-based financing for strategic sectors, as it aims to foster inclusive growth while addressing climate and development challenges.
