Bangladesh Signs Two Agreements Worth $900M with WB

World Bank (WB)

Bangladesh and the World Bank have signed two significant financing agreements worth $900 million to bolster the country’s efforts in achieving environmental sustainability, climate resilience, and inclusive economic growth, particularly in urban infrastructure. The agreements were finalized on Sunday and are set to support key initiatives across various sectors.

"Bangladesh faces one of the highest risks from climate change, which affects both rural and urban populations," said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. "These agreements will help the country adopt green growth strategies, strengthen climate resilience, and develop sustainable infrastructure in urban areas. The World Bank remains a steadfast partner in supporting Bangladesh’s development ambitions while enhancing resilience to climate impacts."

The first agreement, valued at $500 million, is for the Second Bangladesh Green and Climate Resilient Development Credit. This funding aims to support the country’s transition to green and climate-resilient development by funding policy reforms that improve public planning, financing, and the implementation of climate-focused initiatives at both the national and local levels. The financing will promote sustainable practices across sectors, including clean production, energy efficiency, and resource-efficient services.

This financing will also help tackle pressing environmental issues such as air pollution, strengthen environmental enforcement, expand access to carbon markets, and enhance sustainable water and sanitation services. Further efforts will focus on improving the Bangladesh Delta Plan 2100 and promoting climate-resilient public procurement practices that consider both environmental and social impacts. Additionally, the initiative will incentivize greener construction practices by improving energy efficiency in buildings and appliances.

The second agreement, worth $400 million, is for the Resilient Urban and Territorial Development Project, which aims to improve climate-resilient and gender-responsive urban infrastructure in key urban clusters along Bangladesh’s economic corridor. The project will benefit approximately 17 million people across seven city clusters stretching over 950 kilometers, from Cox’s Bazar in the south to Panchagarh in the north.

This project prioritizes coordinated investments in climate-resilient infrastructure and urban planning. It will fund the development of vital transportation and public facilities, including 300 kilometers of footpaths, 880 kilometers of urban roads, 10 regional bus terminals, 10 community centers, 10 parks, and 2000 meters of bridges and culverts, among other projects. Special attention will be given to integrating the needs of female users in infrastructure design, as well as incorporating green features such as rainwater harvesting in buildings.

These projects also aim to create jobs and support the economic development of secondary cities. Municipalities and city corporations will receive grants to invest in climate-resilient and gender-responsive infrastructure, reinforcing the goal of inclusive growth.

The financing agreements were signed by Shahriar Siddiky, Secretary of the Economic Relations Division, and Farid Aziz, Additional Secretary, on behalf of the Government of Bangladesh, alongside Abdoulaye Seck, World Bank Country Director, representing the World Bank.