Bangladesh signs $404m World Bank deal to strengthen health, nutrition and population services

Bangladesh has signed a $404 million loan and grant agreement with the World Bank to support the country's Health, Nutrition, and Population Sector Development Programme.

The information was disclosed in a press release issued by Deputy Secretary Abdul Quader of the World Bank-5 Branch under the Economic Relations Division of the Ministry of Finance.

The agreement was signed today (10 June) at the Economic Relations Division (ERD) of the Ministry of Finance, with ERD Secretary Md Shahriar Kader Siddiky signing on behalf of Bangladesh and World Bank Dhaka office Division Director Jean Pesme signing for the lender.

Under the deal, the World Bank will provide a loan of SDR 284.70 million - equivalent to $379 million - alongside a $25 million grant from the Global Financing Facility.

The funding will finance two projects under the Ministry of Health and Family Welfare, running from 1 July 2025 to 30 June 2029. 

The first, the Health and Nutrition Services Improvement and System Strengthening Project, will be implemented by the Directorate General of Health Services. 

The second, focused on climate-responsive reproductive health and population services, will be handled by the Directorate General of Family Planning.

Both projects aim to improve the quality, accessibility, and resilience of health and nutrition services nationwide, with particular emphasis on Chattogram and Sylhet divisions, while also strengthening reproductive health systems through climate-resilient frameworks.

The loan carries a five-year grace period and is repayable over 30 years. A service charge of 0.75% per annum and an interest rate of 1.25% will apply on disbursed amounts, with a commitment fee of 0.50% on undisbursed balances. 

The World Bank has reportedly waived the commitment fee for an extended period, including the current fiscal year.