The government of Bangladesh and the International Development Association (IDA) of the World Bank (WB) Group signed a grant and additional financing agreement yesterday for a US$0.75 million grant and a US$150 million loan to carry out the “Recovery and Advancement of Informal Sector Employment (RAISE) Project.”
With World Bank financing, the project has been underway since 2021 and is expected to last until June 2026. The additional funding will be put into effect until December 31, 2030.
Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), Ministry of Finance and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan signed the financing agreements on their respective sides. The project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance, said an ERD press release today.
The objective of the project is to provide services that can enhance earning opportunities and employment for low-income urban and rural-youth and youth impacted by Covid-19.
The additional financing comprises a US$150 million loan from IDA and a US$0.75 million grant from the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF).
The loan carries an interest rate of 1.5 percent, a commitment fee of up to 0.50 percent on the undisbursed balance, and a maturity period of 25 years, including a 5-year grace period.
The World Bank is the largest multilateral development partner of Bangladesh. This financing reflects the deep cooperation between Bangladesh and the World Bank. Currently, the World Bank financing is covering a wide range of sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector advancement.
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