The Climate-Resilient Infrastructure Mainstreaming in Bangladesh is the first project to be funded by the GCF, according to the Economic Relations Division or ERD.
ERD Secretary Kazi Shofiqul Azam and KfW Management Committee Member Roland Siller signed the agreement at the National Economic Council or NEC in Dhaka on Thursday. Finance Minister AMA Muhith was also present.
The GCF signed an agreement with the KfW in November last year to transfer the fund for the project.
The German Ministry for Economic Cooperation is providing around $15 million and Bangladesh’s Ministry of Local Government the remaining $25 million for the $80 million project.
According to the GCF website, the project is expected to benefit over 10.5 million people in the coastal areas.
The GCF was established in the 16th Conference of the Parties or COP to the UN Framework Convention on Climate Change or UNFCCC in 2010 with an intention to be the main fund for global climate change finance in the context of mobilising $100 billion by 2020.
Prime Minister Sheikh Hasina has made no attempt to hide her displeasure several times as the developed countries were not fulfilling the pledges they made when the fund was set up.
Climate expert and environmentalist M Atiq Rahman has said Bangladesh should pay more attention to get help from the GCF as the Bangladesh Climate Change Resilience Fund established in World Bank initiative has become ‘ineffective’ while the government’s Bangladesh Climate Change Trust is not getting much fund.
He told Deutsche Welle recently Bangladesh only had GCF to rely upon in this situation.