French aid delivery low despite high dev engagement with BD

The French government's engagement in Bangladesh's development has increased significantly in the last five years, but the disbursement of aid remains low.
According to sources, the annual general consultation of Bangladesh-Agence Francaise de Development (AFD) was held in the French capital of Paris recently focused on the issue with concern.
They said the meeting, the second of its kind and held on May 22-23, emphasised speeding up the process of disbursement as well as signing agreements of the pipeline projects.
It was disclosed in the meeting that though the AFD made the first financial offer in 2012, it disbursed only 15 million Euros so far out of its committed 367 million Euros against different projects. Subsequently, a loan agreement involving 195 million Euros was signed.
AFD side expressed the hope the opening up of the AFD office in Dhaka would now help speed up the signing process of projects and disbursement of loan.
Meanwhile, the AFD is now drafting the country strategy paper for better coordination of its activities in Bangladesh and avoid delay in loan disbursement.
The first consultation between Bangladesh and AFD was held in Dhaka on June 1-2 last year in three years of AFD operations in the country. Following the first meeting's decision, the two parties decided to sit every year alternating venues.
The first five-year strategy for Bangladesh (2017-2021) is to fix objectives to work with the Economic Relations Division (ERD), the ministry of finance in line with Sustainable Development Goals (SDGs), the Bangladesh national policy on development cooperation and the 7th five year plan.
Meeting sources said Bangladesh requested special grant allocation for green climate fund to work closely with the national designated authority, established in ERD to finance climate adaptation and mitigation.
AFD celebrates the 75th anniversary recently committing 9.4 billion Euros in more than 90 countries.
The not-for-profit French public agency It is focusing in Asia with the mandate of promoting green and inclusive growth as per the strategy drafted in 2014.
AFD provides the Bangladesh government support for equipping urban areas with adequate infrastructure. The agency's other priority in Bangladesh is to promote renewable energy and energy -efficient technology.
AFD's total net commitment to Bangladesh reached to 367 million Euros, the signing is likely to increase 170 million Euros by the end of this year.
According to sources, 50 million Euros are expected to be disbursed for the Dhaka Power Distribution Company by this year.
The implementation of Bus Rapid Transit (BRT) and Gandharpur water treatment plant is slow due to nature and conditions of the projects.
These two projects were signed in 2015, but financial agreements for the Saidabad water treatment plant and remediation finance initiative in the garment sector are not signed yet.
At present, the AFD signed credit facility agreement for Greater Dhaka Sustainable Urban Transport project under which special bus service in dedicated lane is expected to be introduced from Gazipur to Airport.
AFD is also providing a technical support for the Dhaka Transport Coordination Authority to build its institutional capacity.
Besides, it provided a grant to water projects under WASA.
The projects which remain in the AFD pipeline include Saidabad-III water treatment plant, power, sewerage and Payra sea port development.
AFD Director for Asia Department Pascal Pacaut led the France side while ERD Secretary Kazi Shofiqul Azam Bangladesh side.
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