Dhaka:A financing agreement has been signed between the Government of Bangladesh and the International Development Association (IDA) of the World Bank Group, providing Special Drawing Rights (SDR) 219,200,000, equivalent to $300 million, for the "Emergency Support for Food Security Project."
According to Bangladesh Sangbad Sangstha, the project is set to run from July 1, 2026, to June 30, 2027. Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan, signed the agreements on behalf of their respective parties.
The Finance Division will implement the project in coordination with the Bangladesh Chemical Industries Corporation and the Bangladesh Agricultural Development Corporation. Its goal is to enhance food security by ensuring the availability of eligible fertilizers for smallholder farmers during planting seasons, as outlined in an ERD press release.
The loan features an interest rate of 1.5% per annum on the Withdrawn Credit Balance and a maximum commitment fee of up to 0.50% per annum on the Unwithdrawn Financing Balance. Notably, the World Bank has been waiving the commitment fee for Bangladesh, including for the current fiscal year. The loan has a maturity period of 25 years, with a five-year grace period.
The World Bank's involvement underscores its role as Bangladesh's largest multilateral development partner, with ongoing financing in various sectors such as economic and social development, institutional reforms, infrastructure development, and energy sector advancement.