WB to provide 850m financing package to create jobs, boost trade
Business Desk:
Bangladesh and the World Bank have signed two financing agreements totaling $850 million to help the country develop the Bay Terminal deep sea port and modernize the national social protection system to accelerate job creation and inclusive growth.
The agreements were signed yesterday in Washington DC by Economic Relations Division (ERD) Secretary Shahriar Siddiky and World Bank interim Country Director Dr Gayle Martin on behalf of the Bangladesh and the World Bank, respectively Dr Salehuddin Ahmed, Finance Adviser of Bangladesh Government, and Martin Raiser, World Bank Vice President for South Asia, were also present at the signing, according to a World Bank press release.
The financing is from the World Bank’s International Development Association (IDA). The World Bank was among the first development partners to support Bangladesh and has committed more than $45 billion in grants, interest-free loans, and concessional credits since the country’s independence, reports BSS.
“Bangladesh and the World Bank have a strong and longstanding partnership to help the country achieve inclusive growth and its development aspirations,” said Shahriar Siddiky, Secretary of Economic Relations Division, Government of Bangladesh.
“These projects will be critical for the country’s climate resilience and a prosperous future.” he added.
“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 labor market every year,” said Gayle Martin, World Bank Interim Country Director for Bangladesh.
“This financing package will be a game changer for job creation by enhancing trade and export competitiveness and helping the most vulnerable graduate from social protection programs and get ready for the job market,” added Martin.
The Bay Terminal Marine Infrastructure Development Project ($650 million) will enhance Bangladesh’s export competitiveness by increasing the port’s capacity and efficiency and reducing transportation costs and time.
It will support essential infrastructure for port development, including a 6 km climate-resilient breakwater and access channels. By accommodating larger vessels, the deep sea port will substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily.
The Bay Terminal will handle about 36 percent of Bangladesh’s container volumes, directly benefiting over one million people by improving access to sustainable transport services and enhancing connectivity to regional and international markets. The project will also facilitate women-owned enterprises to explore trade opportunities and women’s employment in port operations.
The Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting (SSPIRIT) project ($200 million) will provide cash transfers and livelihood services for 4.5 million people, focusing on youth, persons with disabilities, women, and workers in climate-vulnerable regions.
The project will modernize delivery systems, ensuring support reaches those most in need and enabling effective responses to potential climate or economic shocks.
It will establish a national Dynamic Social Registry for accurate targeting of beneficiaries and for identifying individuals eligible for further support, such as livelihoods and employment services.
By combining cash assistance with skills development and entrepreneurship, micro-credit, and mentorship, the project will improve the job readiness and income-earning capacities of about 2.5 million people.