Bangladesh

Bangladesh's development is considerably hampered by its deficient energy supply. According to estimates, up to two percent of additional economic growth could be achieved if there was sufficient and reliable energy available. Especially the rural areas, where the majority of the population lives, suffer from energy shortages. Agricultural produce perishes because it is not cooled sufficiently, children have to do their homework by the light of kerosene lamps which are detrimental to health, and the productivity of small businesses is limited. While electricity production has increased substantially in the last years, existing capacities are still tight. In light of the Government’s ambitious economic growth targets and generally increased living standards, the country’s energy needs will grow further in the future. At the same time, Bangladesh’s most important energy source – local gas – is depleting. It is therefore necessary to explore new sources such as renewable energies and trade options with neighboring countries, and to use the existing energy more efficiently.

Against this background, German Development Cooperation with Bangladesh focuses on two topics: Providing comparatively abundant renewable energy and reducing electricity losses. To this end, KfW is financing the construction of energy efficient transmission and distribution networks and is supporting the installation of pre-paid electricity meters to encourage energy saving behavior. KfW promotes domestic biogas plants to increase energy supply in rural areas and supports larger plants such as solar water pumps for irrigation purposes or small, solar-driven, electricity grids on river islands that provide energy to the local population. These technologies allow for access to modern energy in regions distant to the national electricity grid and substitute hazardous traditional energy sources such as cow dung, fire wood or kerosene.

Project example- Energy  (PDF, 202 KB, non-accessible)

Bangladesh is one of the countries most affected by the impacts of climate change. While natural disasters such as floods and tropical cyclones already form part of the population’s everyday life, these are expected to increase further in number and intensity in the future. These disasters not only pose a severe threat to people's lives but also put in danger the assets and livelihoods of millions of Bangladeshi. At the same time, Bangladesh’s cities are growing at an accelerated speed. While currently less than 30 % of the population lives in urban areas, this number is expected to have tripled in nominal terms by 2050. One of the main reasons is the migration of economic and climate "refugees" from the coastal regions to the cities.

German Development Cooperation is supporting selected cities in Bangladesh to cope with the impacts of climate change, ensuring their citizen’s safety as well as opening up economic and social prospects. The city administrations often do not have the financial means or the technical know-how to use the right planning and administrative instruments to face the dangers from climate-related disasters or slow on-set events (e.g. saline groundwater) and to provide adequate communal infrastructure and services. The ones suffering the most from this situation are the poor people living in the growing slums. For this reason, KfW is financing main roads designed to withstand floods and storms which ensure the population’s safe access to key public infrastructure such as hospitals and schools. KfW is also financing paved access paths to poor communities, adapted drinking water systems and improved drainage canals. Partly in collaboration with the German organization "Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)" the cities are also being supported to incorporate climate change into their planning. By doing so, they will be able to create a safe, productive and livable environment in the long-run which allows their citizens to develop and prosper.

Outside of cities, KfW has been supporting Bangladesh since 1990 to protect the lives of its rural population along the coastal belt form climate-related disasters. Up to today, around 450 cyclone shelters have been constructed, providing protection for up to 470,000 people. In non-emergency times, the shelters mostly serve as primary schools for local children.

Bangladesh's progress in the health sector is impressive. Over the last 20 years, child and maternal mortality rates have fallen significantly. And yet, more needs be done. A large number of people in Bangladesh still experiences poor health and the majority of children suffer from chronic malnutrition. Public expenditures for the health sector are far below the levels recommended by the World Health Organisation. Especially disadvantaged population groups and those living in rural areas have very limited access to public health services.

KfW, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) continues to engage in the "Health, Population and Nutrition Sector Development Program" until end of 2017. The Program is being implemented jointly with other international development partners and aims at implementing priority measures in the health sector which have been agreed upon with the Government of Bangladesh alongside with promoting political dialogue. In addition, KfW is supporting local non-governmental organisations, for example in the city of Sylhet, to introduce family planning to the poor population, e. g. by providing information material and contraceptives. In Tangail, KfW is supporting the introduction of an insurance mechanism ("Social Health Protection Scheme") aiming at improving the access of poor people to health care.