The government of Bangladesh today formalized a financing agreement with the International Development Association (IDA) of the World Bank Group, securing a $270 million loan to implement the ‘Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG)’.
The agreement was officially signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Gayle Martin, Acting Country Director of the World Bank, Dhaka, representing their respective entities.
The B-STRONG project, structured with five distinct components, will be executed by multiple government agencies. These include the Bangladesh Water Development Board (BWDB) under the Ministry of Water Resources; the Department of Agricultural Extension (DAE) and Bangladesh Agricultural Development Corporation (BADC) under the Ministry of Agriculture; the Department of Disaster Management (DDM) under the Ministry of Disaster Management and Relief; the Local Government Engineering Department (LGED) under the Local Government Division; and the Social Development Foundation (SDF) under the Financial Institutions Division.
According to a press release, the project’s implementation phase is slated to run from July 2025 to December 2030.
The primary objective of the project is the comprehensive recovery and reconstruction of roads and dams damaged during the August 2024 floods, alongside the rehabilitation of affected farmers. Beyond immediate recovery, the initiative also aims to bolster resilience, mitigate future flood risks, and foster agricultural and economic development.
The loan features a repayment period of 30 years, inclusive of a five-year grace period. It carries a service charge of 0.75% and an interest charge of 1.25% per annum on the withdrawn loan balance. While a commitment fee of up to 0.50% is applicable, the World Bank has a longstanding practice of waiving such fees.
The World Bank stands as Bangladesh’s largest multilateral development partner, having committed over $43.50 billion to the nation since its independence. This extensive partnership underscores a deepening cooperation between Bangladesh and the World Bank. Currently, the World Bank is financing 47 ongoing projects in Bangladesh, totaling $13.10 billion, covering diverse sectors such as economic and social development, institutional reforms, infrastructure development, and energy sector development.
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