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The funding aims to bolster Bangladesh's economic resilience and enhance urban infrastructure to foster sustainable growth amid climate challenges
Published : 22 Jun 2024, 10:15 PM
The World Bank has approved financing for two projects totaling $900 million to bolster Bangladesh's economic resilience and enhance urban infrastructure to foster sustainable growth amid climate challenges.
The first project – Second Recovery and Resilience Development Policy – with a credit worth $500 million, focuses on advancing fiscal and financial sector reforms crucial for sustained growth and resilience against future shocks, including climate change, the World Bank said in a statement.
This initiative supports the transition from trade to consumption and income taxes, enhances banking sector oversight, and improves management of National Savings Certificates.
Additionally, it aims to streamline public procurement through the e-GP system, reducing procurement lead times and strengthening social protection programmes.
Citing Bernard Haven, World Bank senior economist, the statement said: “A well-functioning financial sector is critical for Bangladesh to increase investment and improve access to finance for those left out of formal banking systems.”
The second project – Resilient Urban and Territorial Development Project – allocates $400 million to enhance climate-resilient urban infrastructure and management capacities in seven city clusters along Bangladesh's economic corridor.
Spanning over 950 kilometers from Cox’s Bazar to Panchagarh, this initiative addresses urbanisation challenges exacerbated by rapid population growth and industrial expansion in Dhaka.
Kwabena Amankwah-Ayeh, World Bank senior urban development specialist, said in the statement: "This project marks the beginning of a series focused on climate resilience and economic opportunities in secondary cities, crucial for Bangladesh's sustainable development."
The two projects aim to create jobs, improve rural-urban linkages, strengthen food supply chains, and enhance connectivity and economic opportunities in targeted areas.
They also prioritise gender-responsive infrastructure and green building features to support sustainable urban development.
“Decisive reforms will help Bangladesh sustain growth and strengthen resilience to climate change and other shocks,” said Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan.
“These new financing operations will help Bangladesh in two critical areas – the financial sector and urban management — to achieve its vision of upper middle-income status.”
