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Bangladesh to get €407m loan, grant

Signs 3 deals with European Investment Bank, European Commission; PM urges EU to give GSP+ benefit after country’s LDC graduation in 2026

Bangladesh signed three loan and grant agreements, worth Euro 407 million, with the European Investment Bank and the European Commission to support the renewable energy sector.

The first agreement -- "Bangladesh Renewable Energy Facility" -- was signed between Bangladesh and the EIB for an EU-guaranteed framework loan of up to Euro 350 million to support climate action investments in Bangladesh.

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Framework loans can be used to finance multiple small- and medium-sized projects.

The deal was signed at the European Commission headquarters in Brussels, where Prime Minister Sheikh Hasina and European Commission President Ursula von der Leyen and EIB President Werner Hoyer were present.

Hasina, in her statement, said, "I hope that the EU will offer GSP+ to Bangladesh to support our development following our LDC graduation in 2026."

She said Bangladesh is seriously concerned over the wars and wanted to work together to establish peace globally.

"We expressed serious concerns over the wars in Gaza, Ukraine and other parts of the world. We agreed to join forces for peace everywhere," she said.

She thanked the EU for its humanitarian assistance for the 1.2 million Rohingyas being temporarily sheltered by Bangladesh.

The PM said the solution to the Rohingya crisis lies in their safe and sustainable return to their homeland in Myanmar.

"I urge the EU to remain engaged for an early and durable solution to the crisis," she added.

Yesterday, the second agreement was signed between the EIB and the commission to grant Euro 45 million to bring in concessional lending tools to support the first renewable energy utility scales project in Bangladesh.

The third agreement, "Partnership for Green Energy Transition", signed between Bangladesh and the EC is worth Euro 12 million and co-financed by Germany, aims to work on policy, legal framework, and investment climate to facilitate an inclusive green energy transition.

Secretary to the Economic Relations Division Sharifa Khan, Deputy Managing Director Markus Berndt of the EIB (GLO) and Director General of International Partnerships of the EC Koen Doens were present at the signing ceremony at the European Commission headquarters in Brussels.