Govt, German KfW sign $40m climate financing deal

A financing agreement involving US$ 40 million was signed Thursday between Bangladesh and KfW Development Bank of Germany to support implementation of the 'Climate Resilient Infrastructure Mainstreaming (CRIM)' project in Bangladesh.

Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and member

of the management committee, Europe and Asia, KfW Development Bank, Germany, Roland Siller signed the agreement on behalf of their respective sides at the ERD in the city's Sher-e-Bangla Nagar area, reports BSS.

Finance Minister Abul Maal Abdul Muhith and other senior officials from the German Embassy in Dhaka, KfW and the government of Bangladesh were also present at the signing ceremony.

Out of the total project cost of $82.75 million, a grant element of $40 million has been approved by the Green Climate Fund (GCF).

The German Federal Government provides parallel co-financing of $15 million through KfW, while the government of Bangladesh will provide $27.75 million as part of supporting the initiative in areas of climate change adaptation.

The purpose of CRIM project is to construct and renovate cyclone shelters and critical access road to protect lives in a rural coastal region of Bangladesh; developing urban infrastructure and safeguarding vulnerable city-dwellers from climate risk; and also to establish a national "Centre 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.

The CRIM project in Bangladesh is the first project approved by the GCF for Bangladesh.