EU along with European Investment Bank signed agreements worth €400 million with Bangladesh for renewable energy projects
The President of the European Commission – Ursula von der Leyen, the Prime Minister of Bangladesh – Sheikh Hasina and the European Investment Bank (EIB), have signed agreements worth € 400 million for renewable energy projects to contribute to a sustainable green transition of Bangladesh’s power sector and the achievement of the country’s climate mitigation targets.
They also launched negotiations on a new Partnership and Cooperation Agreement to expand and develop the relationship between the European Union (E.U.) and Bangladesh.
They also launched 5 additional cooperation projects worth € 70 million, supporting education, decent work, green construction, e-governance and the prevention of gender-based violence.
Taking it to X (formerly Twitter), Ursula tweeted, “Dear Prime Minister Hasina, the 50th anniversary of EU-Bangladesh relations is the occasion to take our partnership to the next level. We are launching new projects under Global Gateway, including €400 million for renewable energy.”
The Ministry of Foreign Affairs, Bangladesh tweeted,
HPM held a bilateral meeting with the President of the European Commission on 25 Oct' 23 morning at the European Commission HQ.Both leaders decided to take the BD-EU partnership to the next level & jointly launched negotiations on a new BD-EU Partnership& Cooperation Agreement. pic.twitter.com/D1Az7qpLpb
— Ministry of Foreign Affairs, Bangladesh (@BDMOFA) October 26, 2023
It further tweeted,
Hon’ble Prime Minister, President of the European Commission & an EIB Vice-President witnessed the signing of a €407 mill. loans & grants (€350 mill. loan & €57 mill. grants) for renewable energy sector of 🇧🇩 & European Commission’s €70 mill. grants for social sector of BD. pic.twitter.com/8VUgBWfAfz
— Ministry of Foreign Affairs, Bangladesh (@BDMOFA) October 26, 2023
The € 400 million announced today between the E.U. and EIB (€395 million) for renewable energy projects includes an E.U.-guaranteed EIB loan of € 350 million, complemented by a blending support package of € 45 million that includes technical assistance and an investment grant. In addition, an accompanying Green Energy Transition project worth € 12 million, of which € 7 million will be co-financed by Germany, will work on policy, legal framework and investment climate to facilitate an inclusive green energy transition.
These projects will contribute to boosting access to energy and rural development throughout Bangladesh, consisting of utility-scale solar photovoltaic and onshore wind projects and potentially associated battery energy storage systems.
The operation is expected to contribute to the installation of an estimated 750 MWp of new renewable energy capacity in Bangladesh. The investments are also likely to improve power distribution and decentralisation, eventually increasing national and, potentially regional, connectivity and resilience.
As part of the technical assistance, the E.U. will help to examine project proposals, including ways of combining energy production and food production on the same plot of land, solar, hybrid solar/wind, and solar with battery. Solar projects and onshore wind projects will be connected to the national grid under the supervision of the Ministry of Power, Energy and Mineral Resources.
Besides, an additional € 70 million package in cooperation actions was also signed between the E.U. and Bangladesh in support of the education sector (€30 million) to promote the decent work agenda, to scale up green construction, to boost effective digital governance, and to prevent gender-based violence in public spaces in the country (€ 10 million in each case).
This year marks the 50th anniversary of E.U.-Bangladesh diplomatic relations. During these years, the E.U. has been a trusted development, trade and humanitarian partner to Bangladesh. The relations between the E.U. and Bangladesh have grown from strength to strength over these five decades to become multidimensional, encapsulating political, trade, development, climate change, connectivity and security concerns.
