Business Report :
A financing agreement has been signed on Sunday between the Bangladesh government and the International Development Association (IDA) of the World Bank Group for an equivalent amount of US$ 500 million loan to implement the “Second Bangladesh Green and Climate Resilient DPC Programme”.
The main objective of the stated programme is to strengthen fiscal and financial sector policies to sustain growth and to enhance resilience to future shocks, including climate change, said a press release on Sunday.
Finance Division is the main implementing agency of this programme. Other implementing ministries or divisions are Local Government Division, Bangladesh Bank, Ministry of Planning, Ministry of Environment, Forest and Climate Change, Ministry of Power, Energy and Mineral Resources, Ministry of Science and Technology, Health Services Division and National Board of Revenue.
Md Shahriar Kader Siddiky, Secretary, Economic Relations Division and Abdoulaye Seck, Country Director, the World Bank signed the financing agreement on behalf of their respective sides.
Out of 500 million, $250 million loan is being taken from the World Bank’s IDA-Regular loan. This loan is repayable in 30 years with 5 years grace period. Interest rate is 1.25 percent, commitment fee is 0.50 percent and service charge is 0.25 percent.
But World Bank waives the commitment fee every year.
Remaining $250 million is being taken from IDA-Shorter Maturity Loan (SUW-SML). This loan is repayable in 12 years with 6 years grace period.
This loan has no interest, service or other charge. There is only 0.50 percent commitment fee, which is normally waived by the World Bank.
The World Bank is the largest development partner of Bangladesh. The World Bank has committed more than USD 43.00 billion for Bangladesh since its independence. At present, the World Bank is financing around $17 billion for 52 ongoing projects that cover economic and social development, institutional, health, infrastructure, power, environment and other important sectors.
