Bangladesh secures $900 million from the World Bank
The World Bank has approved $900 million for two projects aimed at enhancing Bangladesh’s fiscal policies and urban infrastructure to ensure sustainable and climate-resilient growth.
“These financing operations will help Bangladesh in the financial sector and urban management, crucial for achieving its vision of upper middle-income status,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.
The first project, the Second Recovery and Resilience Development Policy Credit ($500 million), supports fiscal and financial reforms to accelerate sustainable growth and build resilience against future shocks, including climate change. It will transition from trade to consumption and income taxes, institutionalize the electronic government procurement system, enhance banking sector oversight, and improve cash-based social protection programs.
“A robust financial sector is essential for increasing investment and expanding access to finance,” said Bernard Haven, World Bank Senior Economist. The financing will streamline the bank recovery framework and strengthen social protection programs to safeguard vulnerable populations.
The second project, the Resilient Urban and Territorial Development Project ($400 million), aims to improve climate-resilient and gender-responsive urban infrastructure in seven city clusters along the economic corridor from Cox Bazaar to Panchagarh. With urbanization expected to rise to 60% by 2050, this project will focus on developing secondary cities to ease congestion in Dhaka, create jobs, and enhance connectivity.
“This project is the first in a series to build climate resilience and create opportunities in secondary cities,” said Kwabena Amankwah-Ayeh, World Bank Senior Urban Development Specialist. The project includes subgrants for climate-resilient infrastructure, aiming to increase municipal revenues by 20%.
The World Bank has supported Bangladesh since its independence, committing about $41 billion in grants and credits. Bangladesh remains one of the largest recipients of the World Bank’s interest-free credits.
