$100m World Bank loan to improve four Dhaka neighbourhoods
The government yesterday signed a $100.5 million financing agreement with the World Bank to improve livability of four major neighborhoods in Dhaka, with an aim to benefit about a million people.
The project titled “Dhaka City Neighbourhood Upgrading” will enhance public spaces and urban services.
The neighbourhoods expected to be benefitted are: Kamrangir Char, Lalbagh, Sutrapur-Nayabazar-Gulistan and Khilgaon-Mugda-Bashabo under Dhaka South City Corporation.
The project will help revamp public spaces like parks, playgrounds, waterfronts; streets, sidewalks; and transform public buildings such as community centres into multipurpose facilities.
The four localities were selected through a series of consultations with different stakeholder groups.
The financing entails a soft loan at 2 percent interest rate that includes 1.25 percent interest and 0.75 percent service charge. Bangladesh has to repay the loan in 30 years with the first five years as grace period.
The agreement was signed by Md Zahidul Haque and Zahid Hussain on behalf of the Government of Bangladesh and the World Bank, respectively, at the Economic Relations Division.
With more than one-third of the country’s urban population living in Dhaka, it is one of the world’s most densely populated cities, said Zahid Hussain, acting World Bank country director for Bangladesh and Bhutan.
Due to inadequate infrastructure, lack of public amenities and severe traffic congestion, Dhaka dwellers face many difficulties in their everyday lives, he said, adding that the project will address some of these challenges and help enhance the quality of civic life.
“Dhaka city accounts for about one-fifth of the country’s GDP and half of formal employment. Hence, it plays an important role in achieving the government’s vision of becoming an upper-middle income country,” said Md Zahidul Haque, additional secretary to the ERD.
The project will help enhance green open spaces by upgrading selected parks, streets and waterfront areas. It will also pilot interventions for safe mobility and traffic management, and incorporate environment-friendly features, energy-efficient design principles and materials in all efforts that it will support.
The project will cater to the needs of women, children, elderly and disabled. Women in Dhaka face challenges in terms of mobility and access to public infrastructure. Around 93 percent of women reportedly do not use public toilets and 42 percent perceive the city’s parks to be unsafe.
To improve personal safety and access for women and children, the project will ensure energy-efficient streetlighting, police posts, health clinics, and other integrated amenities.
Since Bangladesh’s independence, the World Bank has committed over $30 billion, mostly in grants and interest-free credits, according to an official press release. Bangladesh currently has the World Bank’s largest International Development Association programmes totaling $12.4 billion.
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