Bangladesh for the first time is getting funds from the Global Green Climate Fund (GCF) to implement a project to construct climate resilient infrastructure.
Economic Relations Division (ERD) and KfW Development Bank of German federal government signed a financing agreement of US$40 million grants from GCF at a function in Dhaka on Thursday.
Besides the GCF fund, the German government will also provide parallel co-financing worth about $15 million grants to ‘Climate Resilient Infrastructure Mainstreaming (CRIM) in Bangladesh’ project through KfW. The CRIM is the first project in approved by the GCF.
Earlier, Bangladesh had to go alone for adaptation or mitigating climate change impacts with creating its own climate trust fund from local resources.
Total cost of the project has been estimated at $82.75 million of which Bangladesh government will bear $27.75 million from the state coffer.
Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and member of the management committee, Europe and Asia of KfW Development Bank Roland Siller signed the agreement on behalf of their respective sides at ERD in the capital.Finance Minister Abul Maal Abdul Muhith and other high officials from the German embassy in Dhaka, KfW and the government were present at the function. The project also got approval at the Ecnec meeting chaired by Prime Minister Sheikh Hasina.
“It’s good news for Bangladesh that it has eventually been able to get green climate fund, even though we started addressing climate issues with our own trust fund,” Planning Minister AHM Mustafa Kamal told reporters at a press briefing after the project approval.
The purpose of CRIM project is to construct and renovate cyclone shelters and critical access roads to rural coastal region and developing urban infrastructure and safeguarding vulnerable city-dwellers from climate risk.
It also eyes to establish a national "Center of Excellence for Climate Resilience Infrastructure" to inform and guide future infrastructure development throughout the country.
The Local Government Engineering Department (LGED) under the Local
Government Division (LGD) will implement the project. The 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 (UNFCCC) 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.