Bangladesh and the World Bank have signed two financing agreements totaling $900 million to enhance environmental sustainability, inclusive growth, and climate resilience in the country. This initiative includes improvements in urban infrastructure.
"Bangladesh is one of the most vulnerable countries to climate change, impacting the people whether they live in rural areas or in cities," stated Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. "This financing will help Bangladesh achieve green growth and build climate resiliency across sectors, including urban infrastructure. The World Bank remains a committed partner to help Bangladesh achieve its development aspirations while improving resiliency to climate change."
The first agreement involves a $500 million credit for the Second Bangladesh Green and Climate Resilient Development Credit. This funding supports policy reforms aimed at transitioning towards green and climate-resilient development. It focuses on improving public planning, financing, and implementation for green initiatives at both local and national levels. Additionally, it promotes clean production and services across key sectors.
The credit aims to reduce air pollution, enhance environmental enforcement, expand access to carbon markets, improve water and sanitation services sustainably, boost the efficiency of the Bangladesh Delta Plan 2100, and foster a sustainable environment resilient to climate change. It also encourages sustainable public procurement that considers environmental and social factors. Moreover, it seeks to improve energy efficiency in buildings and appliances while incentivizing greener practices within the construction sector.
The second agreement allocates $400 million for the Resilient Urban and Territorial Development Project. This project focuses on enhancing climate-resilient urban infrastructure with gender-responsive features. Implemented across seven city clusters along an economic corridor spanning over 950 kilometers from Cox Bazaar to Panchagarh, it is expected to benefit approximately 17 million residents.
Prioritizing coordinated investment in secondary cities' infrastructure planning, this project will support strategically important corridors' development while creating jobs. Infrastructure designs will address female users' needs and incorporate green building features like rainwater harvesting. Selected municipalities will receive grants for investing in gender-responsive infrastructure.
Planned constructions include over 300 kilometers of footpaths, 10 regional bus terminals, 10 kitchen markets, parks, community centers among others.
Agreements were signed by Mr. Shahriar Siddiky (Secretary) alongside Mr. Farid Aziz (Additional Secretary) from Bangladesh's Economic Relations Division representing their government; Abdoulaye Seck represented World Bank during signings.
World Bank has been supporting Bangladesh since its independence through various financial commitments exceeding $45 billion via International Development Association (IDA). Recently positioning itself among largest recipients globally receiving interest-free credits offered by World Bank as part ongoing developmental efforts addressing priority areas nationwide.