WB to provide Bangladesh with $850 millon for two projects

The World Bank will provide Bangladesh with a total of $850 million to implement two projects- developing  "Bay Terminal Marine Infrastructure" and "Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT)t".

The Bangladesh government has signed two financing agreements in this regard today (23 April) with the International Development Association (IDA) of the World Bank Group at Washington DC, reads a press statement issued by the Economic Relations Division.

As per the agreement, the international lender will provide $650 million to implement the "Bay Terminal Marine Infrastructure Development Project" and $200 million to implement the SSPIRIT Project". 

ERD Secretary Md Shahriar Kader Siddiky and World Bank's interim Country Director Gayle H Martin signed the agreements on behalf of their respective sides.

"The projects will be implemented by the Chittagong Port Authority under the Ministry of Shipping and the Department of  Social Services under the Ministry of Social Welfare and Finance Division, respectively," reads the press statement.

The implementation period of the Bay Terminal Marine Infrastructure Development Project is from April 2025 to June 2031, and that of the SSPIRIT project is from July 2025 to June 2030, it adds.

Representatives of the Bangladesh Delegation of the World Bank-IMF Spring Meeting-2025, including Finance Adviser Salehuddin Ahmed, Chief Adviser's Special Envoy on International Affairs Lutfey Yasser Siddiqi and World Bank high officials, including its Vice President for South Asia Region Martin Raiser, were present at the loan signing ceremony. 

As per the press statement, the main objective of Bay Terminal Marine Infrastructure Development Project is to enable the facilitation of the mobilisation of private investment for the primary gateway port of Bangladesh and increase its operational efficiency.

This project will facilitate the construction of the breakwater, capital dredging of the entrance channel and port basin, and installation of navigation aids.

More specifically, this project will finance three components: (i) Component 1: Support Port Marine Civil Infrastructure, Equipment, and Navigation System Development; (ii) Component 2: Support Port Efficiency Improvements and Capacity Development; and (iii) Component 3: Contingency Emergency Response (CERC) will provide support for an immediate response to an eligible crisis or emergency, as needed. World Bank estimated that after implementation, this Project will reduce $1 million in daily losses by decreasing vessel turnaround time and enhancing port capacity. In addition to that, this project will encourage the private sector to come forward with potential investment in this port area.

On the other hand, the main objective of the SSPIRIT project is to expand coverage and strengthen the delivery of the national social protection system for the poor in Bangladesh. Strengthening social protection delivery through the establishment and roll-out of a Dynamic Social Registry (DSR), strengthening cash transfer programs and expanding livelihoods programs for the poor will be carried out through this project.

The $650 million loan for the  Bay Terminal Marine Infrastructure Development Project will be financed by IDA from three windows, namely $100 million from the World Bank's IDA Country Allocation, $150 million from the Scale-Up Window-Shorter Maturity Loan (SUW-SML), and $400 million from the Scale-up Window (SUW).

The  $200 million loan for the SSPIRIT Project will be provided by IDA from the Performance-Based Allocation (PBA) window.

The World Bank is Bangladesh's largest multilateral development partner.

The lender has committed over $43.50 billion for Bangladesh since its independence, which indicates the direction for deepening cooperation between Bangladesh and the World Bank.

At present, the World Bank is financing $13.10 billion for 47 ongoing projects that cover different sectors, including economic and social development, institutional reforms, infrastructure development and energy sector development.