It is a new initiative aimed at supporting mainly private sector organisations directly through small grants to improve its competitiveness and to cope with the challenges of post-MFA scenario.

SPF is part of the 49 million euro overall support from the EC towards economic development and trade-related capacity building. The main objective of SPF is to support the diversification process of Bangladesh's economy.

Private sector associations, non-governmental and governmental organisations can apply for the grants early next year to support actions in the areas of vocational training technology transfer, trade facilitation and training of media professionals.

These are areas of great importance to strengthen the economic partnership between the EU and Bangladesh, while contributing to poverty alleviation.

The European financial contribution for the SPF is 30 lakh euro and grants will be provided for up to 90 percent of the amount of the project and up to one lakh euro per project. The first Call for proposals will be launched soon.

Mirza Tasadduq Hussain Beg, secretary, Economic Relations Division, and Esko Kentrschynskyj, ambassador and head of Delegation of the European Commission to Bangladesh, signed the financing agreement on behalf of their sides, said a press release.