Two financing agreements worth US$900 million were announced today between Bangladesh and the World Bank (WB) to support the nation’s efforts to achieve inclusive growth, climate resilience, and environmental sustainability, notably in urban infrastructure. “Bangladesh is one of the most vulnerable countries to climate change, impacting the people, whether they live in rural areas or in cities,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, said a press release. He said, “These two financings will Bangladesh achieve green growth and build climate resiliency, across the sectors, including urban infrastructure. The World Bank remains a committed partner to help Bangladesh achieve its development aspirations, while improving resiliency to climate change.” Policies that aid in the nation’s shift to green and climate-resilient development will be supported by the $500 million Second Bangladesh Green and Climate Resilient Development Credit. The funding encourages clean and resource-efficient production and services in important sectors and supports policy changes to enhance public planning, finance, and implementation for green and climate-resilient initiatives at the local and national levels.
Policies to lower air pollution, strengthen environmental enforcement, increase access to carbon markets, improve sustainable water and sanitation services, boost the effectiveness of the Bangladesh Delta Plan 2100, and promote a sustainable and climate-resilient environment are all supported by the funding. Additionally, it encourages environmentally and socially responsible public procurement. It will also encourage the construction industry to become greener and help increase the energy efficiency of appliances and buildings. Along the economic corridor, which spans more than 950 kilometers of highway from Cox Bazaar in the south to Panchagarh in the north of Bangladesh, the $400 million Resilient Urban and Territorial Development Project will assist in enhancing gender-responsive and climate-resilient urban infrastructure and urban management capabilities in seven city clusters. Approximately 17 million people who reside in these particular urban regions will benefit from the project. The project prioritizes coordinated investment in climate-resilient infrastructure and planning across these secondary cities. It will provide investments to support the development of strategically important corridors and city clusters and create jobs. The infrastructure designs will incorporate the needs of female users and green building features including rainwater harvesting. Selected municipalities and city corporations will receive subgrants for investing in climate-resilient and gender responsive infrastructure. It will construct over 300 kilometers of footpaths, 10 regional bus terminals, 10 kitchen markets, 10 supermarkets, 10 parks, 10 community centers, 20 public toilets, 880 kilometers of urban roads, and, 2000 meters of bridges/culverts among others. On behalf of Bangladesh and the World Bank, respectively, Mr. Shahriar Siddiky, Secretary, and Mr. Farid Aziz, Additional Secretary, Economic Relations Division, Government of Bangladesh and Abdoulaye Seck signed the agreements for the Second Bangladesh Green and Climate Resilient Development Credit and the Resilient Urban and Territorial Development Project.
One of the earliest development partners to assist Bangladesh after gaining independence was the World Bank. In order to assist the nation in addressing its development priorities, the World Bank has since provided more than $45 billion in International Development Association (IDA) financing in the form of grants, interest-free loans, and concessional credits. Bangladesh has been one of the biggest beneficiaries of interest-free World Bank borrowing in recent years.
