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Grant Agreement Signed Between Bangladesh and Germany

Dhaka, Broadcasting News Corporation: A total grant agreement of 21.77 million euros has been signed between the Government of Bangladesh and the Government of Germany for five projects proposed by GIZ. The projects are ‘Policy Advisory for Promoting Energy Efficiency and Renewable Energy (PAP) II’, ‘Strengthening Urban Integration Capacities of Internally Displaced Persons and Supporting Host Communities (INTEGRATE)’, ‘Professional Education in Industrial and Environmental Safety (PRECISE)’, Green Room Air-Conditioning (GRACE), and Digital Skills to Succeed in Asia (DS2S).

On Thursday (January 08, 2026), the agreements were signed at the Economic Relations Division in Sher-e-Bangla Nagar, Dhaka. On behalf of the Government of Bangladesh, Md. Shahriar Qadir Siddiqui, Secretary of the Economic Relations Division (ERD), and on behalf of the Government of Germany, Mr. Heinrich-Juergen Schilling, Country Director, GIZ Office Dhaka, signed the grant agreements.

The PAP II project will be implemented under the Power Division of the Ministry of Power, Energy and Mineral Resources from August 1, 2025, to July 31, 2029. In support of this project, the German government has allocated a grant of 9 million euros. The main objective of this project is to improve institutional, economic, and human resource conditions for the socially just and environmentally balanced implementation of energy transition. The INTEGRATE project will be implemented through the Department of Social Services under the Ministry of Social Welfare from October 1, 2023, to September 30, 2027. The allocated grant amount for the project is 4.8 million euros. This allocation will be spent on the economic empowerment of women living in those areas, including persons with disabilities affected and displaced by climate change-induced natural disasters.

The PRECISE project will be implemented under the Department of Technical Education and the Bangladesh Technical Education Board, under the Technical and Madrasa Education Division of the Ministry of Education, from 01 July 2025 to 30 June 2029. The German government has allocated a grant of 7 million Euros for this project. This allocation will be used to enhance the capacity of the TVET sector in Bangladesh.

The GRACE project will be implemented through the Ministry of Environment, Forest and Climate Change from 01 August 2025 to 31 July 2028. The German government has allocated a grant of 0.8 million Euros for this project. The main objective of this project, as part of the national policy framework, is to promote and expand climate-friendly and energy-efficient room air conditioning (Green AC).
The German government has allocated an additional grant of 0.175212 million euros, along with an extension of the project duration until December 2026, in favor of the DS2S project. The main project is being implemented by the Secondary and Higher Education Division from January 2023 to December 2025 with a grant assistance of 0.382526 million euros. This is a regional project. The main objective of this project is to create employment and increase job opportunities in the growing labor market of the Asia region through ethics-based technical knowledge.

It is noteworthy that the German government has long been working as a development partner for Bangladesh. Since 1972, the total commitment of the German government in financial and technical assistance has been approximately 4 billion euros. Currently, GIZ is providing grant assistance of 100.72 million euros in 18 projects in Bangladesh.

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