Bangladesh, World Bank sign $2.25b loan deal

Staff Reporter :
The World Bank has provided Bangladesh $2.25 billion to support growth, regional connectivity and disaster preparedness to improve regional connectivity, boost disaster preparedness to address inland flooding, transition to green and climate-resilient development, strengthen environmental management and green investment, and help the micro-enterprise sector become less polluting and more climate-resilient as Bangladesh and the World Bank jointly celebrates 50 years of partnership at the World Bank Headquarter in Washington DC, USA.

Bangladesh Prime Minister Sheikh Hasina and World Bank Group President David Malpass on Monday commemorated 50 years of partnership between Bangladesh and the World Bank at the institution’s Headquarters, said a press release issued from the WB Dhaka office on Tuesday.
According to the release, the partnership has helped lift millions of Bangladeshis out of poverty and supported the country’s economic growth and development.
Since its independence in 1971, Bangladesh has transformed from one of the poorest countries to achieving lower-middle income status in 2015. The country is now among the world’s fastest-growing economies.

“In 1971, when Bangladesh was born, many development experts were skeptical about the country’s future. The aspirations germinated by our Father of the Nation Bangabandhu Sheikh Mujibur Rahman and, our people have shown the world that with determination, it is possible to overcome even the hardest challenges. Bangladesh has transformed its economy and made it more resilient as demonstrated during the Covid 19 pandemic,” said Prime Minister for Bangladesh Sheikh Hasina, the release said.

“The journey was not always easy, but we have never lost courage. In the past 50 years, the World Bank remained a steadfast development partner and supported our aspirations. We hope to work together with the World Bank as Bangladesh progresses to achieve higher-income country status by 2041,” the release added.
President Malpass reaffirmed the World Bank’s strong support for Bangladesh and its people as the country navigates unprecedented global challenges.
“As Bangladesh’s largest development partner, we welcome its progress in income growth and poverty reduction. We are committed to continuing our support to enable the private sector, create new job opportunities, broaden the tax base, strengthen the financial sector, and build the country’s resilience to economic and climate shocks,” said Malpass.

“Many countries can learn from Bangladesh’s development successes. The country stands out for its innovative approaches to reducing poverty in record time, empowering women, achieving wide-spread electricity access, and adapting to climate change,” he added.

The World Bank signed the financial agreement with Bangladesh of the following five projects: 1. The $753.45 million Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) Program Phase 1 will help improve regional trade, 2. the $500 Resilient Infrastructure for Adaptation and Vulnerability Reduction (RIVER) project will be will be the first major investment project to support the Bangladesh Delta Plan 2100. It will help improve disaster preparedness against inland flooding, 3. The $500 million First Green and Climate Resilient Development Credit will help the country’s transition to green and climate-resilient development, 4. The $250 million Sustainable Microenterprise and Resilient Transformation (SMART) project will help transform the micro-enterprise sector into a more dynamic, less-polluting, resource-efficient, and climate-resilient growth sector and 5. The $250 million Bangladesh Environmental Sustainability and Transformation (BEST) Project help Bangladesh strengthen environment management and promote private sector participation in green investment.

Apart from it, The Prime Minister of Bangladesh and the World Bank President inaugurated a multimedia photo exhibition depicting Bangladesh’s development story over the past five decades and joined a seminar to reflect on 50 years of partnership.

Bangladesh became a member of the World Bank Group in August of 1972. In November of the same year, the World Bank approved the first project for Bangladesh, a $50 million Emergency Recovery Credit to help the war-torn nation rebuild the transport and communication, agriculture, and industrial sectors, as well as provide support for the construction and power sector.

At the same time, the World Bank reactivated four projects that had been approved before the liberation war. Since then, the International Development Association (IDA), the World Bank’s fund for the poorest countries, has committed over $40 billion in financing in the form of grants, interest-free loans, and concessional credits. With about $16.3 billion in financing for 56 ongoing projects, Bangladesh has the largest ongoing IDA program.