Bangladesh, AFD sign Host Country Agreement

In 2022, AFD and the Economic Relations Division of the Government of Bangladesh signed a Host Country Agreement (HCA) for the establishment of AFD activities in Bangladesh, a successful outcome of years of negotiations between the French and Bangladesh governments.

This was a crucial step which came after 10 years of operation and over 20 projects financed in the country. AFD has become a major development partner of Bangladesh.

For the single year of 2022, €278.3 million (loans and grants) were approved, and an unprecedented amount of €183.5m was disbursed.

"AFD has more than doubled the amount of its financing in the course of the last 3 years. This only bears witness to the trust between our two countries, France and Bangladesh. It is also thanks to the efforts of dedicated actors, AFD staff together with our colleagues of the Economic Relations Division of the Ministry of Finance of Bangladesh, that all this was possible. We look forward to continued cooperation between AFD and the ERD, our two countries, for the benefit of the citizens of Bangladesh that both our governments serve," AFD Country Director for Bangladesh, Benoit Chassatte, said.

The totals for the cumulative years 2021-2022 are:

-  €609 million of loans and grants approved by AFD Board

-  €543m of loans and grants signed

-  €313m disbursed

In total, since the start of its operation in Bangladesh in 2012/2013, AFD’s Board has approved a cumulated amount of 1 420 M€ of concessional loans and grants for Bangladesh.

In Bangladesh, AFD operates in a variety of sectors. These are energy, water, sanitation, public transport, health, safety and social protection and all projects must present a high level of climate benefit.

AFD finances projects owned by the Government, state-owned companies or municipalities. Industries of the private sector can benefit from a concessional loan from AFD through credit lines to state-owned banks or financial institutions such as Bangladesh Bank, IDCOL or BIFFL.

AFD maintains a close relationship with several other development partners such as World Bank, Asian Development Bank, European Union, KfW and EIB. A number of projects are cofinanced with one or more of those institutions.

AFD is exploring new locations and sectors in Bangladesh. It is planning to finance a sanitation project in Chattogram and is looking to contribute to the development of the blue economy.