The European Investment Bank (EIB) has made €395 million fund commitments to Bangladesh, including $45 million in grants, to support renewable energy projects.
These projects are aimed at enhancing environmental sustainability and contributing to climate change mitigation and adaptation, aligning with Bangladesh’s sustainable development goals.
The commitments were made during a bilateral meeting between Finance Adviser Dr Salehuddin Ahmed and EIB President Nadia Calvino held in Italy on Sunday on the sidelines of the 58th Annual Meeting of the Asian Development Bank (ADB).
The meeting focused on expanding EIB’s ongoing support in Bangladesh’s priority sectors, according to a release.
During the discussion, the Salehuddin emphasized the urgent need for greater investment in human capital development and infrastructure 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 subsidised financing in strategic sectors critical to Bangladesh’s development trajectory.
The EIB, the primary lending institution of the European Union (EU), has been engaged in Bangladesh since 2000 under a framework agreement with the Government of Bangladesh.
To date, EIB has invested approximately 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.
In addition to EIB, Bangladesh official discussed development cooperation with key international financial partners through high-level bilateral meetings.
The Finance Advisor also held a bilateral meeting with representatives of the Japan Bank for International Cooperation (JBIC). JBIC has long been a valued partner in Bangladesh’s development journey through financing and strategic collaboration.
Its investments in Bangladesh include the DAP-II Fertiliser Plant (USD 715.6 million, now fully repaid), the Ghorasal Fertiliser 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). In these meetings, issues of mutual interest were discussed by both parties.
These engagements emphasise Bangladesh’s commitment to deepening strategic partnerships with key global financial institutions to accelerate sustainable and inclusive growth.