Bangladesh to get $300 million World Bank credit

Bangladesh has signed a $300 million loan agreement with the World Bank to help the poor people improve nutrition of their children.

Despite striking health outcomes, Bangladesh is among the top 10 countries with the highest prevalence of malnutrition.

At least 41 percent Bangladeshi children aged under 5 years are too small for their height while 16 percent are wasted and 36 percent underweight.

The global lender says the project, Income Support Programme for the Poorest, will provide cash transfers to the poorest mothers to reduce their poverty with an aim to improving their kids’ nutrition and cognitive development.

About 600,000 poor mothers and pregnant women will receive monthly payments through biometric-enabled Bangladesh Post Office cash cards for taking part in activities aimed at the growth and development of their children.

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

The credit from the Bank’s concessionary arm, IDA, has a 38 year term, including a six years grace period, and a service charge of 0.75 percent.

“Ensuring adequate nutrition prenatally and in the first two years of life helps to maximize a child’s intelligence and brain development and enables higher level of learning through childhood and into adulthood,” Zutt said during the signing.

“The project will help poor mothers to learn how to improve the nutrition of their young children and also provide an income supplement to enable them better to act on that learning,” he said.

The project will cover 42 of the poorest Upazilas in northern Bangladesh that lag behind in nutrition indicators and is expected to benefit 2.7 million poor people.

Pregnant women and mothers of children below 5 years from extremely poor households will receive payments for regular visits for antenatal care services, child nutrition, and development awareness sessions and monitoring of the child’s weight and height.

“Well Design Safety nets can improve child health and nutrition outcomes, while contributing to reduction of poverty and inequality,” the ERD Senior Secretary said.

“The project is a good example of involving local government bodies as well as using technological innovation to improve service delivery in Bangladesh,” he said.