Economy
Bangladesh, AFD Ink $303m Credit Agreements for 3 Crucial Dev Projects
Bangladesh and the French Development Agency (AFD) have recently finalized credit facility agreements (CFAs) totaling EUR 277 million (approximately $303 million) for three pivotal development projects.
The CFAs were signed on June 22, with Sharifa Khan representing Bangladesh’s Economic Relations Division and Benoit CHASSATTE serving as AFD country director for Bangladesh. Under these agreements, AFD will contribute EUR 62 million to the Greater Dhaka Sustainable Urban Transport Project (BRT Company Component), EUR 175 million to the Chattogram Metropolitan Sewerage Project for North Kattoli, and EUR 40 million to the Bangladesh Environmental Sustainability and Transformation (BEST) project.
The first project, the Greater Dhaka Sustainable Urban Transport Project, aims to establish a sustainable urban transport system within Gazipur City Corporation. A key aspect of this initiative is the introduction of a 20 km Bus Rapid Transit (BRT) corridor, which serves as a pilot project to address integrated urban mobility solutions. The second project, the Chattogram Metropolitan Sewerage Project, aims to fulfill the long-awaited needs of residents in the Port City by constructing a sewerage system and wastewater treatment infrastructure for the North Kattoli catchment area.
Finally, the Bangladesh Environmental Sustainability and Transformation (BEST) project, a collaboration between AFD and the World Bank, focuses on enhancing environmental regulations and enforcement in Bangladesh. It seeks to tackle pollution and improve environmental quality by strengthening the country’s technical and administrative capacities.
AFD, a bilateral development agency responsible for implementing official development assistance on behalf of the French government, has been actively involved in Bangladesh since 2012. Their support extends to various development projects, including urban development, infrastructure initiatives, power and green energy projects, and corporate and social responsibility endeavors. AFD’s commitment to Bangladesh’s development is evident in its provision of EUR 2,101 million in technical assistance projects and a budget support loan of EUR 300 million.
This collaboration between Bangladesh and AFD signifies a significant step towards accelerating the country’s progress and addressing vital areas of development. The funding secured through the CFAs will play a crucial role in promoting sustainable growth and improving the socioeconomic landscape of Bangladesh.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
