BANGLADESH RENEWABLE ENERGY FACILITY

The operation consists of a framework loan of up to EUR 350m to support climate action investments in Bangladesh. The facility will provide long-term finance to the Government of Bangladesh to develop renewable energy generation projects and potentially other eligible climate action investments.

The framework loan will finance a series of renewable energy generation plants located in the People's Republic of Bangladesh, as well as potentially other climate action investments over a three-year period.

The EIB Renewable Energy (RE) Facility would contribute to the implementation of Bangladesh's ambitious climate action targets by financing utility-scale RE projects developed by state-owned power

generation utilities. The RE investments will be enhancing the sustainability of the country's power generation and energy security as well as contributing to climate action measures. The project therefore contributes to EU renewable energy and environmental policies (particularly climate change policies) and meets the Bank's priority objectives as the EU Climate Bank for energy sector lending and climate action. Moreover, the project is strongly aligned with support to the Government of Bangladesh will be provided towards achieving their "Climate Prosperity Plan". Based on the Bank's previous experience, projects are expected to be supported by adequate capabilities / governance by the promoter. In terms of results, the individual projects are expected to have a positive economic return, considering the economic value of the electricity generated. Therefore, projects under this operation are expected to generate a social benefit. In view of the scarcity of long-term financing, the framework loan and

associated blending element will assist the Government of Bangladesh in financing a crucial sector, where investments are commencing to significantly scale up. Affordable and flexible long-term financing with the comprehensive blending approach will avoid a long-term negative impact on the country's energy market, boosting overall sustainable economic development as well as climate action achievements.

If the schemes were located within the EU, most of them would fall under Annex II of the EIA-Directive (2014/52/EU amending the EIA Directive 2011/92/EU), requiring the competent authorities to determine whether an environmental impact assessment (EIA) is required. Or because of the inclusion of certain interconnection infrastructure, under Annex I, requiring mandatory EIA process. In Bangladesh, environmental and social regulations include some of the elements present in the EU Directives, although there is traditionally certain lack of enforcement. In particular, national regulation requires an environmental and social impact assessment (ESIA) for these type of projects. Compliance with EIB Environmental and Social Standards at the Framework Loan and allocation levels will be verified during the appraisal of the schemes, in particular the promoters' E6S capabilities and procedures, public consultation process, vulnerable groups and land tenure issues. The project shall have positive environmental and public health impacts and will allow the population to adapt to the foreseen climate change impacts in the project areas. The Bank will verify the environmental and social risks and impacts of the project components, as well as proposed mitigation and compensation measures, in accordance with EIB's Environmental and Social standards, as set out in Vol I of the EIB Environmental and Social Handbook.

The Bank will require the Promoter to ensure that implementation of the project will be done in accordance to the Bank's Guide to Procurement.

Under EFSD+ Guarantee