The European Investment Bank (EIB) has finalized an agreement to extend a significant financing package to the government of Bangladesh, with the objective of facilitating the installation of 750 megawatts peak (MWp) of new renewable energy capacity in the South Asian nation.
Under the terms of the arrangement, the EIB will provide an EU-guaranteed loan amounting to EUR 350 million (approximately USD 369 million), coupled with an additional blending support package totaling EUR 45 million. This supplementary support includes technical assistance and an investment grant.
The European Commission, announcing the agreement, highlighted that the supported renewable energy projects, primarily encompassing solar and onshore wind initiatives, are poised to make a substantial impact on expanding energy access and fostering rural development across Bangladesh. Furthermore, an associated Green Energy Transition project, valued at EUR 12 million, will concentrate on enhancing policy frameworks, legal structures, and the investment climate.
This financing agreement coincides with discussions between European Commission President Ursula von der Leyen and Bangladesh's Prime Minister, Sheikh Hasina, regarding a new partnership and cooperation agreement between the European Union and Bangladesh. An additional financial package of EUR 70 million has been formalized to support Bangladesh's education sector, promote decent work opportunities, facilitate green construction practices, enhance digital governance, and combat gender-based violence.
The commitment by the European Investment Bank underscores the increasing global emphasis on renewable energy solutions and the pivotal role they play in addressing both energy needs and sustainable development goals. As Bangladesh continues to strive for expanded access to clean energy sources and rural development, these financing initiatives are poised to contribute significantly to the nation's ongoing progress in these vital areas.
