Bangladesh has returned £13 million of climate change aid it received from the UK government following a dispute over how the fund was delivered.
Published : 11 Nov 2016, 11:56 AM
The money was channelled through a fund managed by the World Bank instead of being delivered directly to Bangladesh government.
The decision by the British Department for International Development (DfID) to put the fund in the hands of global lender undermined Bangladesh’s expertise in handling climate issues, experts told the Guardian newspaper.
Bangladesh had initially refused to take the money saying the World Bank would attach unfavourable ‘strings and conditions.’
Relations between Dhaka and the World Bank became bitter after the latter cited corruption to withdraw $1.2 billion funds from the Padma Bridge project in 2013.
“There were issues with the World Bank over accusations they were making,” a spokesperson for the Bangladesh High Commission in London told The Guardian.
“There are a few issues that the prime minister is very strict about – like there should not be strings attached [to aid]. The PM feels very strongly that we will only take deals that will help. We are becoming stronger in our dealing with the international community.”
The unspent fund was part of a £75 million pledge made by Britain to Bangladesh in 2008 for climate finance to developing countries.
Meanwhile, a decision was reached about closing the Bangladesh Climate Change Resilience Fund (BCCRF) where the money had been put.
The Bangladesh government has its own climate fund - the Bangladesh Climate Change Trust fund (BCCTF).
The decision to close BCCRF in June, 2017 was taken jointly by the World Bank and donors, said a statement by the global lender.
A 2015 DfID report had said there were “ongoing challenges” within the multiple donor BCCRF set up in 2010.
Lack of understanding between the World Bank and donors over the fund’s model led to tensions, said the report. Lack of commitment by the Bangladesh government was also blamed for the fund’s slow delivery.