About AFD :
The Agence Française de Développement (AFD) is a French public development finance institution and a bilateral Agency established in more than 70 countries, working to fight poverty and support green and inclusive economic growth in developing and emerging countries. AFD was created in December 1941, and has been implementing the French government’s aid policies for seventy years.
In 2013, AFD celebrated its 20th anniversary of working in Asia. The Agency now tallies operations in 18 Asian countries, 9 offices and – in the near future – EUR 1 billion in commitments.
AFD started its operations in Bangladesh in 2012. In January 2013, it signed with the Government of the People’s Republic of Bangladesh a first loan of USD 45 million. It is a long-term Credit Facility Agreement to support the implementation of the Greater Dhaka Sustainable Urban Transport Project – Dhaka Bus Rapid Transit System – in partnership with the Asian Development Bank (ADB).
In May 2013, an AFD office in Bangladesh was established within the premises of the Economic Department of the Embassy of France, enabling AFD to improve projects identification and implementation and to work in close cooperation with the Government of Bangladesh and other development partners in the country.
Sectors of intervention
Asia will determine the Earth’s future; its population and economic growth will affect natural resource balances planet-wide and have huge effects on the global climate.
Therefore, AFD mainly operates in the following sub-sectors: energy efficiency in cities, transportation, housing, public lighting and waste management; renewable energy, especially micro-hydroelectricity, wind power, geothermal power and biogas; adaptation measures, e.g. irrigation and drainage infrastructure and crop protection, to protect populations and fortify sites against natural catastrophes and climate change impacts, particularly flooding and sea level rise; natural resources conservation, emphasizing sustainable forest products, since forests are crucial worldwide for carbon dioxide sequestration and terrestrial biodiversity.
AFD also promotes sound water management to ensure food security and preserve aquatic biodiversity.
In the future, AFD will reinforce its financing towards urban development, including providing drinking water, supplying clean and sustainable energy, and improving drainage and waste management, with a strong focus on climate change adaptation.
Financing the private sector
AFD holds a subsidiary dedicated to the financing of the private sector, PROPARCO.
PROPARCO’s mission is to boost private investment in emerging and developing countries in favour of growth, sustainable development and reaching the Millennium Development Goals. It invests in a geographical area ranging from major emerging countries to the poorest countries, and has high-level requirements in terms of Social and Environmental Responsibility.
PROPARCO finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable. To match investors’ specific needs, it offers a wide range of financial instruments (loans, equity and guarantees). Tenors range from 5 to 20 years.
PROPARCO has systematic impact measurement tools which are used to pre-select project financing and then throughout the project life.
PROPARCO has been operating in South Asia since 2008, from a regional hub in Delhi. So far, it has committed USD 552 million to 24 investment projects.
In Bangladesh, PROPARCO will focus on the financing of the following sectors: climate change mitigation – renewable energies and energy efficiency projects; food security, agriculture and food processing; financial inclusion – micro finance & micro leasing, SMEs financing; healthcare and education; urban development – water, sanitation, waste management, public transportation, etc.; sustainable tourism.
PROPARCO is already present in the telecom sector, with an energy efficiency project with Grameen Phone in the amount of USD 30 million, and it is actively looking at projects in the agro-sector, SMEs financing, social business and on the environmental and social (E&S) upscaling in the textile and garment industry.
(For more information on activities of AFD or PROPARCO in Bangladesh, please visit the AFD website – www.afd.fr, or contact Marion Sybillin – [email protected] or Steven Gardon – [email protected].)
