$858m World Bank loan for climate resilient agri growth, road safety
Bangladesh and the World Bank yesterday signed two financing agreements totaling $858 million to enhance climate-resilient agricultural growth, food security and improve road safety.
Sharifa Khan, secretary to the Economic Relations Division of the ministry of finance, and Abdoulaye Seck, country director for Bangladesh and Bhutan at the World Bank, signed the agreements, said a press release.
The $500 million programme on Agricultural and Rural Transformation for Nutrition, Entrepreneurship, and Resilience (PARTNER) will help transform the agriculture sector by promoting crop diversification, food safety, and climate resilience across agri-food systems of Bangladesh,
The programme will support sustainable and nutritious food production through greater efficiency in input use, good agricultural practices, and the promotion of stress-tolerant and nutrient-dense varieties.
It will help increase entrepreneurship and access to services by expanding access to digital agricultural services tools, improved food safety processes, and increased female and youth entrepreneurship.
It will also help modernise institutions and policies through improved data management, increased research and development activities, and partnerships with global agricultural research institutions and with the private sector.
"Bangladesh has made remarkable development and economic growth since independence. New frontiers of challenges, like increasing climate change impacts, now call for urgent actions. The World Bank is committed to helping Bangladesh overcome barriers to sustainable and inclusive green growth," said World Bank country director for Bangladesh and Bhutan.
The $358 million Road Safety Project, which is the first dedicated road safety project in South Asia supported by the World Bank, will help the country improve road safety and reduce deaths and injuries from road traffic crashes in selected high-risk highways and district roads.
In two national highways—N4 (Gazipur-Elenga) and N6 (Natore to Nawabganj)—the project will pilot comprehensive road safety measures, including improved engineering designs, signing and marking, pedestrian facilities, speed enforcement, and emergency care.
"These two projects will contribute to the country's vision of achieving upper-middle income status by 2031," said the ERD secretary.
The credits are from the World Bank's International Development Association (IDA) and have a 30-year term, including a five-year grace period.
The PARTNER project will also receive a $43 million co-financing from the International Fund for Agricultural Development (IFAD).
Currently, Bangladesh has the largest ongoing IDA programme totaling $16.3 billion.
The World Bank was among the first development partners to support Bangladesh and has committed about $40 billion in grants, interest-free and concessional credits to the country since its independence.