The World Bank (WB) has approved a $400 million loan aimed at enhancing climate-resilient urban infrastructure in Bangladesh.
Finalized on December 22, the agreement was signed by Shahriar Kader Siddique from Bangladesh's Economic Relations Division and Abdoulaye Sèck, the World Bank's country director in Dhaka.
This initiative targets 81 municipalities and 6 city corporations, benefiting approximately 17 million residents by improving essential urban services and governance. The project will be implemented until June 2030, featuring a 6-year grace period followed by a 12-year repayment plan.
The $400 million loan represents a crucial investment in Bangladesh's climate resilience, addressing the urgent need for sustainable infrastructure in a country increasingly affected by climate change. Titled the Resilient Urban and Territorial Development Project, the focus is on developing and enhancing urban services across the targeted municipalities and city corporations.
The funding aims to strengthen urban planning, financial management, and revenue generation, ensuring that local governments can effectively respond to climate-related challenges. By improving essential municipal services such as water supply, sanitation, and waste management, the project promotes good governance and encourages sustainable urban development.
The loan agreement stipulates a 6-year grace period and a repayment timeline of 12 years, with an annual commitment fee of 0.50 per cent on undisbursed amounts. This financial support empowers local governments to enhance their institutional capacity, allowing them to efficiently plan, finance, execute, maintain, and operate critical infrastructure projects.
As Bangladesh contends with the impacts of climate change, this investment aligns with the country's broader economic development strategy, prioritizing sustainability and resilience in urban areas. The World Bank's commitment underscores its ongoing partnership with Bangladesh to promote sustainable growth while safeguarding communities from the growing frequency and severity of climate-related challenges.
