Bangladesh receives $858 million WB loan in 2 projects

Bangladesh and the World Bank (WB) signed two finance agreements worth USD 858 million (Tk 9180,60,00,000) to boost food security, climate-resilient agricultural growth, and road safety, said a WB press release.

Through the promotion of crop diversity, food safety, and climate resilience across Bangladesh‍‍`s agri-food systems, the $500 million (Tk 53,500,000,000) Program on Agricultural and Rural Transformation for Nutrition, Entrepreneurship, and Resilience (PARTNER) will assist in transforming the agriculture industry, claimed WB in the press release.

The rest $358 (Tk 38,306,000,000) million will be received in Road Safety Project.

WB said, it is the first dedicated road safety project in South Asia supported by the bank—will help the country improve road safety and reduce deaths and injuries from road traffic crashes in selected high-risk highways and district roads.

In two national highways—N4 (Gazipur-Elenga) and N6 (Natore to Nawabganj)—the project will pilot comprehensive road safety measures, including improved engineering designs, signing and marking, pedestrian facilities, speed enforcement, and emergency care.

It will help modernize the capacity of the Traffic Police and highway patrol to manage speeding and prevent risky road user behavior. To improve post-crash care, it will set up an ambulance service via a toll-free number and upgraded emergency care services in selected district hospitals, and Upazila Health Complexes along the two national highway corridors.

“Bangladesh has made remarkable development and economic growth since independence. New frontiers of challenges, like increasing climate change impacts, now call for urgent actions. The World Bank is committed to helping Bangladesh overcome barriers to sustainable and inclusive green growth,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.

“These two projects will be important to help the country remain on a sustainable growth path through boosting climate-resilient agricultural productivity and enhancing the income of hundreds and thousands of farmers as well as protect the people and the economy from the loss caused by untimely deaths, disabilities, and injuries resulting from road crashes,” he added.

“These two projects will contribute to the country’s vision of achieving upper-middle income status by 2031,” said Sharifa Khan, Secretary, Economic Relations Division, Government of Bangladesh.

“Our National Agriculture Policy places high priority to ensure nutrition, food security, and climate resilient agriculture and the new Road Transport Act places a substantial focus on road safety. By ensuring food security, empowering farmers, creating opportunities for entrepreneurship as well as improving road safety management and minimizing tragic loss of human lives, these two projects will contribute to sustainable economic growth,” she added.

The agreement was signed by Sharifa Khan and Abdoulaye Seck on behalf of Bangladesh and the World Bank, respectively.

The credits are from the World Bank’s International Development Association (IDA) and have a 30-year term, including a five-year grace period. The PARTNER project will also receive a $43 million co-financing from the International Fund for Agricultural Development (IFAD).

Bangladesh currently has the largest ongoing IDA program totaling $16.3 billion. The World Bank was among the first development partners to support Bangladesh and has committed about $40 billion in grants, interest-free and concessional credits to the country since its independence, the WB press release furthered.

(Calculation: 1 dollar = 107 taka)