Bangladesh: €395 million EIB and EU backing for renewable energy projects
25 October 2023
The first EIB and EU renewable energy projects ever funded in Bangladesh will support the installation of an estimated 750 MWp of renewable energy capacity in the country.
The project comes under a €350 million EIB framework loan for green energy generation, with the support of a €45 million EU grant for concessional lending tools and technical assistance.
At the Global Gateway Forum held today in Brussels, a €350 million loan by the European Investment Bank (EIB) and a €45 million EU investment and technical assistance grant were signed to support climate action investments and develop renewable energy generation projects in Bangladesh. The signing was attended by Teresa Czerwińska, Vice-President of the EIB; Ursula von der Leyen, President of the European Commission; and Sheikh Hasina, Prime Minister of Bangladesh, and coincided with the 50-year anniversary of the EU-Bangladesh partnership.
The €350 million framework loan provides for investments in utility-scale public green energy generation, implemented through various public promoters represented by power generation entities. The €45 million EU blending grant includes €6 million of technical assistance to ensure that all sub-projects comply with international market practices and the EIB’s environmental and social standards, and €39 million of investment grants to bring in concessional lending tools to support these first utility-scale renewable energy projects in Bangladesh.
The project pursues the sustainable green transition of the country’s power sector and its climate mitigation targets. The sub-projects, located throughout Bangladesh to boost energy access and rural development, will mainly consist of utility-scale solar photovoltaic and onshore wind projects, and potentially the associated battery storage systems. The operation is expected to enable installation of around 750 MWp of new renewable energy capacity in Bangladesh.
These investments should also improve power distribution and decentralisation, increasing national (and even regional) connectivity and resilience. These are key objectives of the Global Gateway initiative created to support projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
EIB Vice-President Teresa Czerwińska stated, “As the EU Climate Bank, alongside our Global Gateway partners, the EIB is constantly working to increase the impact of its climate lending and to support countries like Bangladesh in transitioning to more sustainable and green energy generation. I’m proud of the first EIB operation for renewable energy projects in Bangladesh that contributes to meeting the country’s ambitious renewable energy target. This operation shows the EIB's strengthened commitment to Bangladesh’s sustainable development.”
Speaking in Brussels, European Commission President Ursula von der Leyen said, “The European Commission, the EIB and Bangladesh are partnering to foster renewable energy. With €400 million of support, Global Gateway is making a difference for the people of Bangladesh.”
Prime Minister of Bangladesh Sheikh Hasina remarked, “We are confident that this initiative will enable developing countries such as Bangladesh to fight climate change, to address infrastructure gaps, invest in renewable energy, digital innovation, healthcare, education and much more. The Global Gateway is a sign of friendship, of partnership, of trust, of symbiotic interdependence.”
About the European Investment Bank
The EIB is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with project schedules. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.
About the EIB in Bangladesh
The EIB is the largest multilateral public bank in the world. In 2022 it financed around €10.8 billion in investments outside of the European Union via EIB Global, the arm of the Bank created that same year for activities beyond Europe. Since the beginning of its operations in Bangladesh in 2000, the EIB has supported six projects in the country and has invested more than €670 million in water, transport and health projects.
About the EIB in Asia
For 25 years, the EIB has supported economic development in Asia and the Pacific. The projects we finance make people’s lives easier — from modernising the rail fleet in Bangladesh, to providing cheaper, cleaner energy to western Nepal. In Asia, we have chosen to focus our lending on climate action across all sectors. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from them equally and equitably.
About the Global Gateway initiative
EIB Global is a key partner in the implementation of the EU’s Global Gateway initiative, by supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the EIB’s 60-year track record in this area. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion (nearly a third of the initiative’s target) by the end of 2027.
The European Investment Bank (EIB), the bank of the European Union and the largest multilateral lender in the world, will provide €250 million to the People’s Republic of Bangladesh to support procurement of safe and effective vaccines and country-wide immunisation against COVID-19. Vaccination efforts will also include Rohingya refugees from Myanmar currently hosted in Bangladesh.
The EIB has agreed to provide EUR 82 million to the Government of Bangladesh (People’s Republic of Bangladesh) to support more efficient power generation in the country and reductions in emissions. The project will have important climate change benefits in a country that is especially vulnerable to the impacts of climate change.
The European Investment Bank (EIB), the bank of the European Union and the largest multilateral lender in the world, will provide €250 million to the People’s Republic of Bangladesh via EIB Global to support procurement of safe and effective vaccines and country-wide immunisation against COVID-19. Vaccination efforts will also include Rohingya refugees from Myanmar currently hosted in Bangladesh.