World Bank provides $404 million for Bangladesh health, nutrition sectors

The World Bank has signed an agreement with the Bangladesh government to provide $404 million in loan and grant assistance for the development of the country's health, nutrition and population sectors. The agreement was signed at the Economic Relations Division on Wednesday, June 10.

ERD Secretary Md Shahriar Kader Siddiky signed on behalf of Bangladesh, while World Bank Country Director for Bangladesh Abdoulaye Seck signed on behalf of the lender .

Under the agreement, the International Development Association will provide a loan of SDR 284.70 million, equivalent to $379 million . Additionally, the Global Financing Facility will provide a grant of $25 million .

The financing will support two projects. The 'Health and Nutrition Service Development and System Strengthening Project' will be implemented by the Directorate General of Health Services, aiming to improve the quality and availability of health and nutrition services, particularly in Chattogram and Sylhet divisions .

The 'Climate-Resilient Reproductive Health and Population Service Development and System Strengthening Project' will be implemented by the Directorate General of Family Planning, which will improve the quality of reproductive health and population services and strengthen climate-resilient management frameworks .

The $379 million loan is to be repaid over 30 years, including a five-year grace period . The service charge is 0.75 per cent per annum, and the interest rate is 1.25 per cent per annum on withdrawn credit balances . A commitment fee of 0.50 per cent per annum is applicable on the undisbursed balance, though the World Bank has long refrained from collecting this fee .