Germany agrees to increase investment in country’s mega projects, climate financing

Germany has agreed to invest in Bangladesh's mega projects and proposed a new partnership focused on climate change and development. 

The decision was taken during development cooperation negotiations between the governments of both countries in Berlin on 13-14 May. A German delegation is scheduled to come to Bangladesh in January to explore investment opportunities.

The delegation from Bangladesh was headed by Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD) at the Ministry of Finance.

Germany's delegation was headed by Parliamentary State Secretary Dr Bärbel Kofler, while the negotiations were conducted by Barbara Schäfer, head of the Division for Policy Issues of Cooperation with Asia, South Asia, German Federal Ministry for Economic Cooperation and Development (BMZ).

After five decades of cooperation, both delegations recognised the successful partnership and have expressed interest and enthusiasm to continue this friendship for many more years to come, reads a press release.

The total volume of bilateral and technical financial assistance that Bangladesh received from Germany since 1972 is more than €3.5 billion.

Speaking at the event, Bangladesh Ambassador in Berlin Md Mosharraf Hossain Bhuiyan said, "Bangladesh and Germany have embarked on a journey of cooperation that spans various sectors, from economic development and trade to education, health, and beyond. 

"At its core, this partnership is rooted in the shared values of democracy, inclusivity, and sustainable development."

ERD Secretary Md Shahriar emphasised the importance of Germany's support in fostering economic growth and development in Bangladesh. 

"Germany has been crucial in supporting our efforts to strengthen infrastructure, expand the industrial base, and enhance competitiveness in the global market. Their initiatives in technical assistance, capacity building, and investment promotion have empowered Bangladesh to realise its economic potential and improve livelihoods," he said.

Dr Bärbel Kofler, in her opening remarks, expressed satisfaction with the ongoing collaboration. "We are glad to continue our support for the Bangladeshi success story," she said. 

The Bangladesh delegation also sought climate finance. 

The current German government established a new partnership category – climate and development partnerships and they have offered this new and enhanced partnership to Bangladesh.

The partnership of both countries entailed a wide range of instruments including technical and financial cooperation using development loans and grants, reads the media release.

Both sides agreed to work intensively on this new partnership model. They welcomed the in-depth discussion on this new climate and development partnership and will work with the aim to conclude a joint declaration of intent (DoI). 

The countries also discussed issues of development cooperation including climate change and energy, training and skills development, biodiversity, human rights and good governance.