The government on Tuesday signed two financing agreements with the International Development Association (IDA) of the World Bank under which the lending agency would provide $ 473 million to build a strong financial sector and long-term disaster resilience in urban areas of Dhaka and Sylhet.
Of the amount, $300 million is for the Financial Sector Support project, while $173 million for the Urban Resilience project.
Economic Relations Division (ERD) Senior Secretary Mohammad Mejbahuddin and World Bank Acting Country Head Christine Kimes signed the deals on behalf of their respective side at the ERD.
Credits from IDA have a 38 year term, including a 6-year grace period, and a service charge of 0.75 percent.
The Financial Sector Support project will support developing long-term financing market in Bangladesh. The project will enable the participating financial institutions to provide long-term financing to manufacturing and export intensive firms.
The Urban Resilience Project will address seismic risk and reduce structural vulnerability of future building constructions in Dhaka and Sylhet. The project will strengthen the capacity of government agencies to respond to emergency events by equipping them with response resources, including emergency operations centers, inter-operable communication systems, and search and rescue equipment.
The project will also contribute to improved building construction practices through certified training programs and development of on-line permitting systems in Dhaka and Sylhet.
“The two projects signed today will contribute to building a prosperous and resilient Bangladesh. The Financial Sector Support Project will help make doing business in Bangladesh easier by providing eligible private sector firms with access to long-term financing. This will help to create more jobs,” said World Bank’s acting Country Head Christine Kimes.
