The World Bank approved a total of $2.25 billion loan to Bangladesh for improving regional connectivity, boosting disaster preparedness to address inland flooding, transitioning to green and climate-resilient development, strengthening environmental management and green investment.
It will also help the micro-enterprise sector become less polluting and more climate-resilient.
The World Bank has agreed to provide this loan for five development projects on regional trade and connectivity, disaster preparedness and environmental management.
A loan agreement was signed between Bangladesh and the global lender at the WB headquarters in Washington DC on Monday.
Sharifa Khan, secretary of the Economic Relations Division (ERD) and Abdoulaye Seck, Country Director, World Bank in Bangladesh signed the financing agreements on behalf of Bangladesh and the World Bank respectively, said a press release issued by the Ministry of Finance on Tuesday.
Prime Minister Sheikh Hasina and WB President David Malpass witnessed the exchange of the agreement.
Prime Minister Sheikh Hasina, and World Bank Group President David Malpass on Monday commemorated 50 years of partnership between Bangladesh and the World Bank at the institution’s headquarters, said a press release issued by the World Bank on Tuesday.
The partnership has helped lift millions of Bangladeshis out of poverty and supported the country’s economic growth and development.
Since its independence in 1971, Bangladesh has transformed from one of the poorest countries to achieving lower-middle income status in 2015.
The country is now among the world’s fastest-growing economies.
“In 1971, when Bangladesh was born, many development experts were skeptical about the country’s future. The aspirations germinated by our Father of the Nation Bangabandhu Sheikh Mujibur Rahman and, our people have shown the world that with determination, it is possible to overcome even the hardest challenges. Bangladesh has transformed its economy and made it more resilient as demonstrated during the COVID 19 pandemic,” said Prime Minister Sheikh Hasina.
“The journey was not always easy, but we have never lost courage. In the past 50 years, the World Bank remained a steadfast development partner and supported our aspirations. We hope to work together with the World Bank as Bangladesh progresses to achieve higher-income country status by 2041, she added.
Malpass reaffirmed the World Bank’s strong support for Bangladesh and its people as the country navigates unprecedented global challenges.
“As Bangladesh’s largest development partner, we welcome its progress in income growth and poverty reduction. We are committed to continuing our support to enable the private sector, create new job opportunities, broaden the tax base, strengthen the financial sector, and build the country’s resilience to economic and climate shocks,” said Malpass.
“Many countries can learn from Bangladesh’s development successes. The country stands out for its innovative approaches to reducing poverty in record time, empowering women, achieving wide-spread electricity access, and adapting to climate change,” he mentioned.
The Prime Minister and the World Bank President inaugurated a multimedia photo exhibition depicting Bangladesh’s development story over the past five decades and joined a seminar to reflect on 50 years of partnership.
Bangladesh became a member of the World Bank Group in August of 1972.
In November of the same year, the World Bank approved the first project for Bangladesh, a $50 million Emergency Recovery Credit to help the war-torn nation rebuild the transport and communication, agriculture, and industrial sectors, as well as provide support for the construction and power sector.
At the same time, the World Bank reactivated four projects that had been approved before the liberation war.
Since then, the International Development Association (IDA), the World Bank’s fund for the poorest countries, has committed over $40 billion in financing in the form of grants, interest-free loans, and concessional credits.
With about $16.3 billion in financing for 56 ongoing projects, Bangladesh has the largest ongoing IDA program.
On Monday, the World Bank approved around $2.25 billion loan for five development projects including Resilient Infrastructure Building Project (RIVER), Bangladesh Environmental Sustainability and Transformation (BEST), Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) –Bangladesh Phase-1, First Bangladesh Green and Climate Resilient Development (GCRD) and Sustainable Microenterprise and Resilient Transformation (SMART).
Of the projects, the resilient infrastructure scheme with $500 million for adaptation and vulnerability reduction will be the first major investment programme to support Bangladesh Delta Plan-2100 as it will help improve disaster preparedness against inland flooding.
The second project on Bangladesh environmental sustainability and transformation worth about $250 million will help Bangladesh strengthen environmental management and promote private sector participation in green investment.
The third one on accelerating transport and trade connectivity in Eastern South Asia-Bangladesh phase-1 with $753.45 million will help Dhaka improve regional trade and connectivity.
The forth project on first green and climate resilient with $500 million will help the country’s transition to green and climate resilient development.
The fifth and the last scheme on sustainable micro enterprise and resilient transformation involving $250 million will help transform the micro enterprise sector to be a more dynamic, less polluting, resource efficient and climate resilient growth sector.