World Bank gives Bangladesh $2.25bn in loans for 5 projects in a year

The development schemes will cover regional trade and connectivity, disaster preparation, and environmental management

The World Bank and Bangladesh have signed a $2.25 billion loan deal for five development projects that cover regional trade and connectivity, disaster preparedness and environmental management., state news agency BSS reports.

The loan agreement was signed in Washington, DC on Monday at an event commemorating 50 years of collaboration between Bangladesh and the World Bank.

The five projects are the Resilient Infrastructure Building Project (RIVER), the Bangladesh Environmental Sustainability and Transformation (BEST), the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) –Bangladesh Phase-1, the First Bangladesh Green and Climate Resilient Development (GCRD), and the Sustainable Microenterprise and Resilient Transformation (SMART).

The signing of the deal was witnessed by Prime Minister Sheikh Hasina and WB President David Malpass.

“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 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.”

Malpass reiterated the World Bank's support for Bangladesh.

“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,”

“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.”

Under the loan deal, the RIVER project will receive $500 million for climate adaptation and vulnerability reduction. It is also the first major investment programme to support the Bangladesh Delta Plan-2100, helping to prepare and protect against inland flooding.

The BEST project is getting $250 million to help Bangladesh strengthen environmental management and promote green investment by the private sector.

The ACCESS project is getting $753.45 million to help Dhaka improve regional trade and connectivity.

The GCRD is getting $500 million to help Bangladesh transition to green and climate resilient development.

The SMART scheme is getting $250 million to make the micro enterprise sector more dynamic, resource efficient, and climate resilient while also helping to reduce pollution.

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.