WB extends $1.1b to shore up food, energy security

The World Bank has approved $1.1 billion in financing for two projects to help Bangladesh secure fertiliser supplies, protect food security and strengthen its capacity to respond to economic shocks triggered by volatility in global fertiliser and fuel markets.

The financing comes as Bangladesh grapples with higher food, fertiliser and fuel prices linked to the Middle East conflict, alongside mounting fiscal pressures.

“Rising food, fertiliser and fuel prices stemming from the Middle East conflict, along with tighter fiscal space, have deeply impacted Bangladesh’s economy, hitting smallholder farmers as well as poor and vulnerable people the hardest,” said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan.

“The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact to ensure fertiliser supply for rice production, protect households, jobs and livelihoods and continue with essential services,” he added.

The package includes the $300 million Emergency Support for Food Security Project, which will provide temporary financing for fertiliser imports required for the Aman and Boro rice-growing seasons between July 2026 and April 2027.
Bangladesh imports more than 85 per cent of its fertiliser requirements.

The project will finance the import of 600,000 metric tonnes of essential fertilisers, including 300,000 metric tonnes of urea, enough to support rice cultivation on around 1.4 million hectares operated by smallholder farmers.”

Bangladesh’s food security depends on the Aman and Boro rice seasons, which together account for about 90 per cent of the country’s total rice production. Further, about half the population is employed in the agriculture sector.

So, any disruption in fertiliser supply would not only threaten food security, it would deepen poverty and cost jobs,” said Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project.

The second initiative, the $713 million Contingent Emergency Response Project, is intended to provide rapid financing during crises by supporting emergency expenditures, including cash transfers and livelihood assistance for affected households and micro, small and medium-sized enterprises (MSMEs).

The project will also finance fuel and energy supplies to help maintain essential services, including food distribution, healthcare, energy and water supply.

The World Bank said the project is scheduled to disburse funds by 30 June 2026.

“This project will provide Bangladesh immediate access to funds through the World Bank’s crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed and protecting people, businesses and jobs from the impact of shocks,” said Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist and Task Team Leader for the project.

Together, the two projects account for more than $1 billion in emergency financing aimed at supporting agricultural production, safeguarding vulnerable households and ensuring the continuity of essential services during periods of external economic stress.