Bangladesh

In Bangladesh, there is still a shortage of energy – especially in rural areas, where the vast majority of people live: agricultural products continue to spoil because they cannot be properly refrigerated and small businesses can only operate to a limited extent. People in villages still often use traditional fuels that are harmful to health and the environment, such as cow dung, firewood or kerosene.

However, a lot has been achieved in recent years: around 90% of people now have access to electricity. But the government has ambitious economic growth targets, and the rising standard of living means that the country will need even more energy in the future. At the same time, Bangladesh’s most important energy source to date, domestic gas reserves, are running out.

KfW is therefore helping the country to expand renewable energy and improve energy efficiency. This includes promoting solar roofs that generate electricity and are connected to the transmission and distribution grid. To improve energy supply, especially in rural areas, KfW also promotes domestic biogas plants as well as larger systems like solar pumps for agricultural irrigation or solar grids on river islands that supply electricity to local residents.

Project information - Energy  (PDF, 131 KB, non-accessible)

Bangladesh is particularly hard hit by climate change: floods and tropical cyclones are part of everyday life and will increase in number and intensity in the future. Many people are therefore leaving the coastal regions, contributing to the rapid growth of the cities.

KfW, on behalf of the German government, is helping selected cities in Bangladesh to prepare for climate change and not only offer their residents greater protection, but also create economic and social opportunities. Among other things, this means providing funds for main roads designed to be safe for floods and storms to ensure that the population has year-round access to important public facilities such as hospitals and schools. At the same time, roads to the many poor neighbourhoods are being paved, the drinking water supply is being improved and upgraded, and investments are being made in the sewer system.

KfW is also promoting the Climate Bridge Fund, which was established back in 2019 with the non-governmental organisation BRAC to support small-scale NGO projects focusing on climate change adaptation. In the current crisis, KfW, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), pledged EUR 10 million under the Emergency COVID-19 Support Programme to establish a financing window (Emergency Response Window) within the fund. The goal is to be able to respond quickly and effectively to crises and the COVID pandemic and the resulting consequential damage. Support will also be provided in particular to municipalities particularly affected by climate change, climate refugees and host communities. The aim is to protect poor population groups in particular from the spread of the virus and to help them protect their livelihoods.

In August 2017, there was a large influx of refugees from Myanmar into Bangladesh. Since then, 860,000 Rohingya have been living in more than 30 designated refugee camps in the Cox’s Bazar district on the border with Myanmar. The Rohingya are still denied formal legal status, and safe return to Myanmar is impossible in the current situation. The host communities also need help, as Cox’s Bazar is already one of the poorest districts in Bangladesh. Provisions for the local population in the surrounding host communities are sometimes even worse than in the camps. In addition, the region is frequently hit by natural disasters, such as cyclones and heavy rain.

In cooperation with the International Organisation for Migration (IOM), KfW is providing support for measures including the construction and expansion of sanitary facilities, waste separation and disposal, hygiene programmes and the repair of the rainwater drainage system in the camps. More than 200,000 refugees in the camps and 20,000 people in the surrounding communities will benefit from the project. Furthermore, the people living in the Rohingya camps are supported through several transitional aid projects in cooperation with UNICEF in the areas of basic education and vocational training, as well as the surrounding host communities with basic infrastructure in cooperation with the World Bank.