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Bangladesh signs $40m development deal with Germany’s KfW bank

  • Published at 07:00 pm March 8th, 2018
  • Last updated at 07:02 pm March 8th, 2018
Bangladesh signs $40m development deal with Germany’s KfW bank
Bangladesh has signed a development agreement worth $40 million with the KfW Development Bank of German Federal Government, to support implementation of the “Climate Resilient Infrastructure Mainstreaming (CRIM)” project in the country. Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and KfW Development Bank Management Committee Member (Europe and Asia) Roland Siller signed the agreement on behalf of their respective sides at the ERD office in Dhaka on Thursday. Finance Minister Abul Maal Abdul Muhith and other high officials from the German Embassy in Dhaka, KfW and Bangladesh government were also present at the ceremony. Out of the total project cost of $82.75 million, a grant element of $40 million has been approved by the Green Climate Fund (GCF). The German government provides parallel co-financing of $15 million through KfW, while the Bangladesh government will provide $27.75 million as part of supporting the initiative in areas of climate change adaptation. The purpose of CRIM project is to construct and renovate cyclone shelters and critical access road to protect lives in a rural coastal region of Bangladesh; developing urban infrastructure and safeguarding vulnerable city-dwellers from climate risk; and also establishing "Center of Excellence for Climate Resilience Infrastructure" to inform and guide future infrastructure development throughout the Bangladesh. The Local Government Engineering Department (LGED) under the Local Government Division (LGD) will implement the project. The estimated implementation period of the project is six years. The GCF is a new multilateral, multi-billion dollar fund which was established by 194 countries as the parties to the UN Framework Convention on Climate Change in COP (conference of parties) 2010. It is intended to operate at a larger scale to promote the paradigm shift towards low-emission and climate-resilient development pathways. The CRIM project in Bangladesh is the first project approved by the GCF for Bangladesh.