WB-funded Tk8,483cr projects for Rohingya, host community approved

The government today approved two umbrella projects involving Tk8,483 crore, financed by the World Bank, to improve the quality of life for the Rohingya and their host community affected by the displaced people from neighbouring Myanmar.

The multilateral lender will disburse a total of Tk7,719.65 crore (equivalent to $700 million) – Tk3,244 crore as a grant for the Rohingyas and Tk4,478 crore as a loan for the host community.

There will be 12 sub-projects spanning local road development, waste management, forestry, electrification, disaster management, pre-primary education, and primary health services.

The projects were approved at the meeting of the Executive Committee of the National Economic Council (Ecnec) on Tuesday, chaired by Prime Minister Sheikh Hasina.

After the meeting, Planning Minister Abdus Salam, Planning Division Secretary Satyajit Karmaker, and members of the Planning Commission briefed reporters.

The Planning Division secretary said, "The World Bank initially wanted to provide grants solely for the development of the Rohingya community. However, the government did not accept this.

"During negotiations, the government argued that the host community is also suffering due to the presence of the Rohingyas. So, if the World Bank wanted to fund the Rohingyas, it would also have to fund the host community. Following this, a series of meetings were held with the World Bank."

The interest rate that the World Bank will charge on the loan is also very low, he added.

Sources at the Economic Relations Division stated that the interest rate of the loan will be 1.25% with a service charge of 0.75%.

The project titled "Host and Forcefully Displaced Myanmar Nationals (FDMN)/Displaced Rohingya Population (DRP) Enhancement of Lives through a Multi-Sectoral Approach Project (HELP): Infrastructure Related Project" will cost Tk4,081.84 crore.

In this project, Tk2,329.89 crore will come from the World Bank as a loan and Tk1,485 crore as a grant.

Seven agencies will implement six sub-projects under this umbrella project by June 2026.

Another umbrella project is the "Inclusive Services and Opportunities (ISO) for Host Communities and FDMN Populations" project in the socio-economic sector, including health and education, at an estimated cost of Tk4,401 crore.

The World Bank will provide Tk2,145.38 crore as a loan and Tk1,759.37 crore as a grant. Separate agencies will implement six sub-projects under this umbrella project.

The ERD will coordinate both umbrella projects.

The Planning Division secretary said the government has approved this type of umbrella project for the first time. During this time, the prime minister directed government officials to go beyond traditional methods and emphasise new innovations.

In response to a question, the planning minister said, "The World Bank has not imposed a loan on us. They initially wanted to provide grants only for the Rohingyas. However, we explained that the pressure on our local population has increased due to the Rohingyas. This pressure affects both the local population and the Rohingyas.

"Due to the Rohingyas, there is increased pressure on our food crops, roads, and water supply. The government is doing what it can to manage this pressure, but we cannot secure funding without the World Bank's assistance. Conversely, the World Bank cannot impose a loan on us."

He further explained that the Rohingyas are here because of state policy, and we cannot expel them. The government has sought assistance from various sources for the Rohingyas, but no significant help has been forthcoming.

"Additionally, we cannot relinquish control over the Rohingyas because an epidemic in their community could spread throughout the country. Considering all these aspects, we decided to accept grants for the Rohingyas and loans for the host community," he added.

At today's ECNEC meeting, 11 projects worth Tk14,337 crore were approved, including these two umbrella projects. Other approved projects include protection work to prevent erosion of the Karnaphuli River and connected canals under Boalkhali upazila in Chattogram, sustainable water management (1st stage) in Banshkhali and Anwara upazilas of South Chattogram, construction of a modern steel silo for rice in Naogaon, rural infrastructure development in Rajshahi, Natore, and Chapainawabganj districts, and Technical Assistance for Repurposing Agricultural Public Support Towards a Sustainable Food System Transformation in Bangladesh (TARAPS).

Procurement of 35 commercial and eight auxiliary vessels for BIWTC, construction of two new slipways, development of the Cumilla-Lalmai-Chandpur-Lakshmipur-Begumganj and Begumganj-Sonaimuri-Ramganj regional highway into a 4-lane road, development of Cox's Bazar airport (1st stage), Bangabandhu Sheikh Mujib Shilpanagar water treatment plant, and deep tube well installation project were the other projects to passed today.