$157m WB credit to improve rural livelihoods
The government yesterday signed two credit agreements worth 157 million US dollar for the 'Empowerment and livelihood improvement project, known as the Notun Jibon Project, and additional financing for the on-going Municipal Services Project.
The agreements were signed at the Economic Relations Division (ERD).
ERD Secretary M Musharraf Hossain Bhuiyan and World Bank Country Director Ellen Goldstein signed on behalf of their respective side, said a World Bank press release.
The credit from the International Development Association (IDA), the World Bank's concessional lending arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.
According to the press release, 115 million US dollar provided for the Notun Jibon supports the second phase of a 12-15 year community-driven development programme focused on the poorest districts.
It will improve the quality of life and the livelihoods of poor households in rural areas while helping to build resilience to climate change and natural disasters, it said.
The second phase will scale up results from the first phase, which included completion of 1,700 community infrastructure projects as local roads, culverts, bridges; creation of 22,000 women's savings groups; skill enhancement and job creation for 75,000 vulnerable youths; and skills training and income generation for 30,000 of the poorest and most vulnerable individuals.
“Our new country strategy to support Bangladesh underscores the importance of scaling up in areas where we see development results' said Ellen Goldstein at the ceremony.
The first phase benefited an estimated 3 million people in seven of Bangladesh's poorest districts. The second phase will deepen activity in these districts and expand to eight others, reaching an additional 3 million people, the release said.
The 42 million dollar additional funding for the on-going Municipal Services Project is one response to the World Bank's strategic priority of improving planning and management of the urbanisation process in Bangladesh.
Started in 1999, the project has financed basic infrastructure, such as water supply, roads and street lighting in about 130 municipalities, and repaired and rehabilitated flood-damaged infrastructure in more than 200 towns following the devastating floods of 1998, 2004 and 2007.
The additional financing will support infrastructure improvements in around 170 towns and improve financial and management capacity in municipalities.
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