Bangladesh signs $375 million loan agreement with WB for shelter project

Bangladesh has signed a $375 million financing agreement with the World Bank for a multipurpose disaster shelter project.

Economic Relations Division (ERD) Senior Secretary Mohammad Mejbahuddin and World Bank Country Director Johannes Zutt signed the agreement at the ERD on Monday.

The credit has a 38 year term, including a six year grace period, and a service charge of 0.75 percent.

The project will construct 552 new multipurpose disaster shelters, improve 450 existing shelters, and build connecting roads and communication networks in nine coastal districts.

The multipurpose shelters are designed in such a manner that they would serve as primary schools during the year, and provide safe haven to local community during natural disasters.

Those will be able to protect people from high wind speeds and storm surges and will be equipped with water supply systems and separate sanitation facilities for men and women.

They will also have space for animals and livestock.

The global lender says the project will benefit 14 million coastal people living in the front line of climate change in Barisal, Bhola, Chittagong, Cox’s Bazaar, Feni, Lakhshmipur, Noakhali, Pirojpur and Patuakhali districts.

The project will introduce steel shelter designs for the first time in Bangladesh for improved construction quality and durability.

ERD senior secretary during the signing said over the last decades, “Bangladesh successfully created a growing network of cyclone shelters and the community-based early warning system that saved lives and assets during natural disasters”.

This project would “build and upgrade shelters to reduce the vulnerability of people living in coastal areas and help Bangladesh build a long term disaster resiliency,” World Bank Country Director said.