$1.1b budget support from ADB, WB to be available this month
Bangladesh signs $900m WB deal to improve environment sustainability, urban and climate resilience
Highlights:
- $500M from WB for climate-resilient development
- Additional $659M from WB for health and water supply
- $600M from ADB to boost reform initiatives
- Disbursement expected by this month
The Asian Development Bank (ADB) and the World Bank (WB) have approved a total of $1.1 billion in budget support for Bangladesh, which is expected to be available this month.
The WB approved $500 million, while the ADB approved $600 million to accelerate the reforms and development activities of the interim government, according to a press release from the finance ministry today (22 December).
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In addition to the budget support, the World Bank has also approved $379 million for the country's health and nutrition sector and $280 million for the development of the water supply system in Chattogram.
Meanwhile, Bangladesh and the World Bank signed two financing agreements totalling $900 million today to help the country achieve environmental sustainability, climate resiliency, including in urban infrastructure and inclusive growth.
On 18 December, a loan agreement of $600 million was signed between the government of Bangladesh and the ADB for the programme titled "Strengthening Economic Management and Governance Programme, Subprogramme 1". This programme was formulated at the initiative of the Finance Division.
The WB has approved a budget support of $500 million for Bangladesh on 19 December.
The WB is providing this budget support under the "Second Bangladesh Green and Climate Resilient Development Credit" for the successful implementation of green and climate-resilient development reform programmes.
Bangladesh receives $900m WB financing
The agreements for the Second Bangladesh Green and Climate Resilient Development Credit and the Resilient Urban and Territorial Development Project were signed by Economic Relations Division Secretary Shahriar Siddiky and Additional Secretary Farid Aziz and Abdoulaye Seck on behalf of Bangladesh and the WB, respectively, according to a press release.
"Bangladesh is one of the most vulnerable countries to climate change, impacting the people, whether they live in rural areas or in cities," said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.
"These two financings will help Bangladesh achieve green growth and build climate resilience, across the sectors, including urban infrastructure. The World Bank remains a committed partner to help Bangladesh achieve its development aspirations, while improving resilience to climate change."
The $500 million Second Bangladesh Green and Climate Resilient Development Credit will support policies to help the country's transition to green and climate-resilient development.
The financing supports policy reforms to improve public planning and financing and implementation for green and climate-resilient interventions at local and national levels and promote clean and resource-efficient production and services in key sectors.
The financing supports policies to reduce air pollution, improve environmental enforcement, expand access to carbon markets, enhance sustainable water and sanitation services, improve the efficiency of the Bangladesh Delta Plan 2100, and advance a climate-resilient and sustainable environment.
Also Read: Bangladesh secures $1.16b from World Bank for health, climate efforts
It also supports sustainable public procurement incorporating environmental and social considerations. It will further help improve the energy efficiency of buildings and appliances and incentivize the construction sector to become greener.
The $400 million Resilient Urban and Territorial Development Project will help improve climate-resilient and gender-responsive urban infrastructure and urban management capacities in seven city clusters along the economic corridor covering over 950 kilometres of the highway from Cox Bazaar in the south to Pantagraph. The project will benefit about 17 million people living in these selected urban areas.
