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.
The Kazipara and Mirpur-10 metro stations, which have been closed, are expected to reopen by the end of September, though the exact date has not yet been confirmed. Mohammad Abdur Rauf, Managing Director of Dhaka Mass Transit Company Limited (DMTCL), told TBS that a technical team has been tasked with resolving the issues at the stations.
“We are working to reopen the two stations within this month, but I cannot give a specific launch date yet. We will hold a meeting with the technical team and other stakeholders soon to review the progress. A decision is likely on 18 September,” Rauf said.
He noted that Kazipara station is likely to open earlier due to less severe damage, while Mirpur-10 may face delays as it requires machinery that needs to be imported.
Additionally, Rauf mentioned plans to begin metro rail operations on Fridays starting from 20 September, with efforts being made to meet this timeline.
Dr. Muhammad Yunus, the Chief Adviser of the interim government, has announced the formation of six commissions as an initial step toward reforms, including constitutional amendments. These commissions are expected to begin operations on 1 October and complete their work within three months.
In an address to the nation on Wednesday evening (11 September) from the Chief Adviser’s Office, Yunus outlined the government’s reform agenda. This is his second national address since taking office on 8 August.
Yunus explained that the formation of the six commissions is the first step in a broader plan for constitutional reform. He stated that the commissions would be led by six distinguished citizens, selected based on their expertise. These commissions will tackle various reform areas, and more will be established in the future.
Emphasizing the importance of constitutional reforms for free and fair elections, Yunus stated, “We believe that imposing majority rule through elections, resulting in misgovernance or consolidating all power into the hands of one person, family, or group, is unacceptable. To prevent this, we are considering reforms to institutions like the Election Commission and others involved in the election process. Reforming the police administration, civil service, judiciary, and Anti-Corruption Commission is essential for ensuring fair and transparent elections. These reforms will also contribute to establishing a state system based on public ownership, accountability, and welfare.”
Yunus announced the names of the six commission heads:
- Dr. Badiul Alam Majumdar will lead the Election System Reform Commission.
- Sarfaraz Chowdhury will head the Police Administration Reform Commission.
- Justice Shah Abu Naeem Mominur Rahman will lead the Judiciary Reform Commission.
- Dr. Iftekharuzzaman will lead the Anti-Corruption Reform Commission.
- Abdul Muid Chowdhury will head the Public Administration Reform Commission.
- Dr. Shahdeen Malik will lead the Constitutional Reform Commission.
The Chief Adviser mentioned that the other members of these commissions would be determined in consultation with the heads. Additionally, representatives from the advisory council, students, workers, social movements, civil society, and political parties will participate in the commissions’ discussions.
Yunus expressed hope that the commissions would be fully operational by 1 October and complete their work within three months. Based on the commissions’ reports, the government plans to organize consultations with major political parties. A broad consultation, lasting three to seven days, involving students, civil society, political party representatives, and the government will follow. This consultation will finalize the reform framework and outline its implementation strategy.
Yunus concluded by stating that this initiative will unify the nation, fulfilling the demands of the July uprising and strengthening the country with renewed hope and optimism.
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has urged the Bangladesh government to implement a more investment-friendly tax structure to enhance foreign investor confidence.
During a meeting on Wednesday (11 September) with the newly appointed chairman of the National Board of Revenue (NBR), Abdur Rahman Khan, FICCI leaders highlighted the need for comprehensive tax reforms that would position Bangladesh as a more attractive destination for foreign direct investment (FDI) and strengthen the national economy.
Zaved Akhtar, President of FICCI, stressed the significance of fully digitising NBR operations, particularly by advancing automation systems to maximise revenue collection, as outlined in the chamber’s press release.
The delegation also recommended the establishment of a dedicated research unit within the NBR to broaden the tax base and increase revenue through in-depth market analysis, identifying gaps between market share and revenue generation.
NBR Chairman Abdur Rahman Khan acknowledged the importance of automation in stimulating economic progress and welcomed FICCI’s research findings on the taxation landscape.
FICCI’s delegation included Senior Vice President Eric M. Walker, other board members, and senior officials from member companies, alongside key officials from the NBR.
