The fund would be used for development of different sectors including renewable energy, sustainable urban development, and sustainable supply chains in the textile sector.
Germany will provide Bangladesh €339.54 million financial assistance for development in different sectors.
The amount will be used in different sectors including renewable energy, sustainable urban development, good governance, displacement and migration, and sustainable supply chains in the textile sector.
The commitment came at a bilateral meeting styled 'Negotiations on Bangladesh-German Bilateral Development Cooperation-2020', held virtually on 28-29 October last, said a press release sent to the media on Sunday.
Additional Secretary to Finance ministry Dr Gauranga Chandra Mohanta led the Bangladesh delegation at the meeting while Dr Ute Heinbuch of Federal Ministry for Economic Cooperation and Development of Germany led the German delegation.
At the event, both parties discussed issues of development cooperation including environment, climate change, human rights and good governance, reads the press release.
In addition, support for integrated management of the Sundarbans mangroves and the marine protected area 'Swatch of No Ground' was agreed.
During the last negotiations in November 2018, Germany committed to providing €200 million for several sectors.
Temporary cash support for Covid-affected workers
In its new commitments, the German government has informed the Bangladesh government that it has partnered with the European Union to assist vulnerable workers in export-oriented garment and leather industries.
Temporary cash assistance will be provided to workers who are suffering income losses during the pandemic and have lost jobs because of reduced worldwide demand.
Eligible workers will receive Tk3,000 per month for at least three months.
To this end, the European Union initially created a welfare fund amounting to €93 million. Later, Germany announced another €20 million in grant for it. Now the total fund stands at €113 million.
Notable, for sustainability project in textile and leather sectors, Germany committed up to €500,000 through a verbal note on 3 August this year.
Promotion of climate-friendly energy supply
Germany will also provide funds for the promotion of climate-friendly energy supply projects.
According to ERD, as a response to the persistent investment needs of electricity distribution companies, the German government intends to provide a soft loan for further modernising the electricity distribution infrastructure and developing the networks into 'smart grids'.
Seeking anonymity, an ERD official said as committed through a verbal note on 1 August 2020, Germany will provide an additional €40 million for energy efficiency in grid based power supply for the central zone -2 project.