Dhaka: A financing agreement was signed today between the government of Bangladesh and the International Development Association (IDA) of the World Bank Group involving a $270 million loan to implement the ‘Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG)’.
According to Bangladesh Sangbad Sangstha, Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Gayle Martin, Acting Country Director of the World Bank, Dhaka, signed the financing agreement on behalf of their respective sides. The project aims to support Bangladesh’s recovery and reconstruction efforts following the flood of August 2024, with a focus on rebuilding flood-affected roads and dams and rehabilitating farmers.
The project has five components and will be implemented by various government bodies, including the Bangladesh Water Development Board under the Ministry of Water Resources, the Department of Agricultural Extension and Bangladesh Agricultural Development Corporation under th
e Ministry of Agriculture, the Department of Disaster Management under the Ministry of Disaster Management and Relief, the Local Government Engineering Department under the Local Government Division, and the Social Development Foundation under the Financial Institutions Division.
The implementation period for this project is set from July 2025 to December 2030, as stated in a press release. The project’s objectives include resilience building, reducing future flood risks, and supporting agriculture and economic development.
The loan is repayable over 30 years, with a grace period of five years. The service charge is 0.75%, and the interest charge is 1.25% per annum on the loan withdrawal balance. The commitment fee is up to 0.50%, though the World Bank has waived commitment fees for an extended period.
The World Bank is the largest multilateral development partner of Bangladesh, having committed over $43.50 billion to the country since its independence. This substantial financial support indicates a contin
uing and deepening cooperation between Bangladesh and the World Bank. Currently, the World Bank is financing $13.10 billion for 47 ongoing projects, which cover various sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector development.