Thursday, 29 September, 2022

AFD — a platform for the development financing

The Agence Française de Développement (AFD) is a Financial Development Institution owned by the French Government and operating since 1942. AFD funds, supports and accelerates the transitions to a fairer and more sustainable world. Focusing on climate, biodiversity, peace, education, urban development, health and governance, we carry out more than 4,000 projects in France’s overseas departments and territories and another 108 countries. In this way, AFD contributes to the commitment of France and French people to support the sustainable development goals.

Here are key figures of the AFD around the world:

In 2021, the total commitment of the AFD worldwide is €11.8 billion, similar as last year. Still impacted by the COVID-19 pandemic, AFD has been able to stabilize its support to developing countries, and to provide a multi-pronged response to the health, economic and climatic emergencies. AFD is translating into action the French Government’s commitment to support priority countries for France’s Official Development Assistance.  

AFD’s commitment to Bangladesh

Since 2012, AFD and Bangladesh have been working together to develop low-carbon infrastructures and to promote access to essential services for the people. One goal: to support green and inclusive growth in Bangladesh.

Since 2012, the total commitment of AFD to Bangladesh is €1,142 million (€1,112 million as loan & €30 million as grant) financing 22 projects. AFD provides loans and grants together with technical assistance, expertise and policy support.  

With a mandate matching the Bangladeshi government’s priorities, AFD’s interventions are based on the following areas of cooperation:

Our main implementing partners are Dhaka Power Distribution Company (DPDC), Infrastructure Development Company Limited (IDCOL), Bangladesh Infrastructure Finance Fund Limited (BIFFL), Dhaka WASA, Chattogram WASA, Department of Social Services, Roads, Highways Department, and the Bangladesh Bank. The AFD is concretely acting hand in hand with the Government of Bangladesh to develop low-carbon infrastructures and to promote access to essential services for the people in order to achieve the Bangladesh’s aspiration of becoming a middle-income country by 2031. 

Fiscal year 2020-2021 has seen a boom in AFD’s activities in Bangladesh. Thanks to an excellent cooperation with ERD representing the Government of Bangladesh, a total of €331 million of grants and soft loans was approved during the fiscal year and more than €750 million of assistance is scheduled to be signed in the next two fiscal years.

2020-2021 has been an opportunity to amplify existing commitments in energy, social protection, as well as in water and sanitation, notably through a crucial additional funding for Gandharbpur treatment plant.

To meet the immediate economic and social crises arising out of COVID pandemic, AFD has mobilized a budget support financing of €200 million concessional loan to strengthen the health and social protection national system. Early 2022, AFD disbursed a first installment of €72 million.

Besides, AFD is preparing the financing of projects in green finance, renewable energy, urban development, blue economy in the coming two years. 

Finally, a Host Country Agreement between the Government of France and the Government of Bangladesh has been signed on May, 12th 2022, a few days before the Annual Consultation Meeting between the ERD and AFD in Paris. The Agreement legally seals the establishment of the AFD as a Development Partner of Bangladesh.

AFD is now ready to strengthen its support Bangladesh development. As such, the AFD Dhaka office counts already 12 permanent staffs (+3 from 2019).