Bangladesh, IFAD deepen partnership with $324m investment in climate-resilient rural development

The government of Bangladesh and the International Fund for Agricultural Development (IFAD) are carrying forward their long-standing partnership with two investments worth a combined $324 million to strengthen climate resilience, rural livelihoods, and food systems.

Implemented by national institutions with partners, the investments aim to reach 2.5 million people by improving rural infrastructure and climate information while expanding access to finance, skills, markets, and nutritious food.

The partnership reached two milestones with the launch of the $112 million Climate Resilience and Livelihood Enhancement Project (CRALEP), in partnership with the government of Denmark.

It follows the launch of the $212 million Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project.

"Bangladesh's partnership with IFAD has grown over nearly 50 years to include financing, innovation, technical assistance, and the scaling up of successful approaches," said Moslema Naznin, chief of the Coordination and NORDIC Wing at the Economic Relations Division (ERD) of the Ministry of Finance today.

"These two investments address connected priorities for rural development: infrastructure that withstands climate shocks and the finance, skills, and market opportunities to build more secure livelihoods," she said.

Each investment is delivered through a national institution and answers a different constraint faced by rural households and enterprises.

CRALEP will be implemented by the Local Government Engineering Department, with a focus on the flood-prone Haor and drought-prone High Barind regions.

GREEN will be implemented by the Palli Karma-Sahayak Foundation under the Financial Institutions Division, working across the Haor, coastal, High Barind, and river char areas.

Together, they pair physical resilience with economic opportunities.

"These two projects reflect a shared commitment to support rural communities to adapt and prosper in a changing climate," said IFAD Country Director and Representative in Bangladesh Valantine Achancho.

"Each project has its own role, but both are designed to give women, young people, and rural families stronger foundations for their livelihoods, closely aligned with the government's priorities," he said.

Over six years, CRALEP aims to reach 1.45 million people across 33 upazilas, IFAD said today.

It will improve village roads, rural markets, and boat landing facilities. In the Haor, it will also support village services, raise shelters for people, harvest crops, and protect nature against erosion.

Early warning for flash floods in the Haor and drought forecasting in the High Barind will help communities prepare for climate risks.

Vocational and entrepreneurship training will expand opportunities for young people, while labor contracting societies will support employment for poor women.

The project brings three partners into a single financing package: $70 million in IFAD financing, $10 million in government of Denmark grant financing, and approximately $31.75 million from the government of Bangladesh.

"The intervention we are looking at is very timely, and combining climate resilience with livelihood enhancement, which is what the project is all about, is very important. We hope this will reduce the negative impacts of climatic variability and increase community resilience," said Deputy Head of Mission at the Danish Embassy in Dhaka Anders B Karlsen.

GREEN is a six-year investment that aims to reach more than 250,000 rural households. It will support climate-resilient and environmentally responsible food systems, inclusive financial services, and stronger institutional capacity.

Through finance combined with technical assistance, skills, green technologies, and market partnerships, the project aims to create employment and increase incomes of small-scale producers and rural entrepreneurs. It will also support safer and more nutritious food and reduce post-harvest losses. GREEN includes $51.4 million in IFAD financing.

Bangladesh and IFAD have worked together since 1978, with 39 projects representing a total investment of approximately $4.9 billion, including $1.1 billion in IFAD's own funds.

That cooperation has reached 11.7 million rural households, supporting small-scale agriculture, rural finance, and value chain development. CRALEP and GREEN build on that record, applying proven approaches in new geographies and deepening climate adaptation and access to finance for rural people.