BD, AFD sign $303m credit agreements for 3 crucial dev projects

Bangladesh and Agence Française de Développement (AFD) or the French Development Agency have entered credit facility agreements (CFA) for three crucial development projects, totalling EUR 277 million (approximately USD 303 million).

The CFAs were signed on June 22 by Sharifa Khan, secretary to the Economic Relations Division, representing Bangladesh, and Benoit CHASSATTE, AFD country director for Bangladesh.

Under the CFAs, AFD will provide EUR 62 million for the BRT project, EUR 175 million for the Chattogram Metropolitan Sewerage Project, and EUR 40 million for the BEST Project.

The first project, known as the Greater Dhaka Sustainable Urban Transport Project (BRT Company Component), aims to establish a sustainable urban transport system in Gazipur City Corporation (GCC).

This project will introduce a 20 km Bus Rapid Transit (BRT) corridor — serving as a pilot project to provide a holistic solution for integrated urban mobility.

The second project, the Chattogram Metropolitan Sewerage Project for North Kattoli, addresses the long-awaited needs of Port City dwellers.

It involves the construction of a sewerage system and wastewater treatment infrastructure for the North Kattoli catchment area, located in the northwest part of Chattogram city.

The third project, called the Bangladesh Environmental Sustainability and Transformation (BEST) project, is a joint effort between AFD and the World Bank.

It aims to enhance environmental regulations and enforcement in Bangladesh. The project focuses on curbing pollution and improving environmental quality by strengthening the country's technical and administrative capacity.

AFD, a bilateral development agency responsible for implementing official development assistance on behalf of the French government, has been actively operating in Bangladesh since 2012.

AFD’s support encompasses a wide range of development projects, including urban development and infrastructure initiatives such as water and sanitation, public transport, and urban services. They also focus on power and green energy projects, including energy efficiency and renewable power, as well as corporate and social responsibility endeavours aimed at enhancing safety standards and environmental and social performance.

To date, AFD has committed EUR 2,101 million in technical assistance projects and has provided Bangladesh with a budget support loan of EUR 300 million, demonstrating its sustained commitment to the country's development.