- The AFD will finance women-led green projects and SMEs in Bangladesh.
- The JICA has contributed $150m to the fund.
- The fund will cover about 70% of capital costs for projects.
Paris-based Agence Française de Développement (AFD) is set to provide a €50 million ($58.9 million) funding line for small and medium-sized businesses and women-led clean energy developers in rural Bangladesh. AFD will provide the funds to the Bangladesh Infrastructure Finance Fund Limited to support renewable energy and energy efficiency projects. Japan’s International Cooperation Agency has also contributed $150 million to the fund.
According to the Bangladesh Ministry of Finance’s Economic Relations Division, rural SMEs and co-operatives would be prioritized for funding. The fund has already supported a 20 MW solar project. According to the Bangladesh Infrastructure Finance Fund, it contributes loans to cover up to 70 per cent of the capital costs for green projects. The loans are provided at a 6 per cent interest rate.
Only about 3.3 per cent (767MW) of the electricity produced in Bangladesh is generated from renewable sources.