Bangladesh, World Bank sign $850mn deal to boost jobs, trade

The bulk of the funding, $650 million, will support the Bay Terminal Marine Infrastructure Development Project, the global lender says

A participant stands near a logo of the World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, Oct 12, 2018. REUTERS/File Photo

Bangladesh and the World Bank on Wednesday signed two financing agreements worth $850 million to strengthen the country's trade capacity, create jobs, and modernise its social protection system.

The bulk of the funding, $650 million, will support the Bay Terminal Marine Infrastructure Development Project, an initiative to expand and modernise port facilities in Chattogram, the Washington-based global lender said.

The project will include constructing a 6-km (3.7-mile) climate-resilient breakwater and access channels, allowing the port to accommodate larger vessels. This is expected to sharply reduce turnaround times, lower transportation costs, and boost Bangladesh’s export competitiveness.

Officials estimate the improvements could save the economy around $1 million per day.

The Bay Terminal is projected to handle 36 percent of the nation’s container traffic, benefiting more than one million people by improving access to transport and regional markets. The project will also promote women’s participation in port operations and support women-led businesses in exploring trade opportunities.

"To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labour market every year," Gayle Martin, the World Bank's interim country director for Bangladesh, said in a statement.

The remaining $200 million will go toward the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project, which will deliver cash and livelihood services to 4.5 million vulnerable people. Its focus will be on youth, women, persons with disabilities, and workers in climate-affected areas.

The project will establish a national registry to improve targeting and service delivery. It will also provide skills training, micro-credit, and entrepreneurship mentoring.

The financing comes from the World Bank’s International Development Association (IDA), which has committed more than $45 billion to Bangladesh since its independence in 1971.