Bangladesh is receiving another sum of US$1.16 billion in three World Bank loans as the WB Board of Executive Directors Friday approved the funds mainly meant for budget support and ramping up reforms.
The funding, including $500 million in budget support, will also go for boosting health-and water-supply services in the country.
The funds are likely to be confirmed by next week as the global lender will sign three separate deals with the government, Economic Relations Division (ERD) officials said Friday.
The $500-million budget support would be the second of its kind for Bangladesh after the $600 million worth of budget financing approved by the Asian Development Bank on December 18.
The two other loans were approved to improve health services ($379 million) and Chattogram Water Supply and Sewerage Authority (WASA) services ($280 million), the World Bank said in a press release on the day.
With the $500 million Second Bangladesh Green and Climate Resilient Development Credit, the Washington-based lender will support reforms to help Bangladesh’s transition to green and climate-resilient development.
Under the Health, Nutrition, and Population Sector Development Programme (HNPSDP), the $379- million loan will help improve access to quality health and nutrition services and build resilient health systems.
Moreover, as part of the Chattogram WASA improvement project, the $280-million loan will facilitate the supply of safe water through new and rehabilitated piped connections to over one million people in the port city.
According to the World Bank, the $500-million budget credit will support policy reforms to improve public planning as well as financing and implementation of green-and climate-resilient development projects and programmes at local and national levels. “Reforms will also promote clean and resource-efficient production and services in key sectors.”
Besides, the financing will support policies to reduce air pollution, improve environmental enforcement, expand access to carbon markets, enhance sustainable water-and sanitation services, improve the efficiency of the Bangladesh Delta Plan 2100, advance a climate-resilient and sustainable environment, and support sustainable public procurement by incorporating environmental and social considerations.
The $379 million worth of credit under HNPSDP will help improve access to quality health-and nutrition services and build resilient health systems in Sylhet and Chattogram divisions. It will provide quality health, nutrition, and population services to about 5.1 million people.
The programme will help reduce maternal and neonatal mortality by increasing the number of births, both normal and caesarean section deliveries, in public health facilities.
Moreover, it will ensure that vulnerable women in the most climate-vulnerable districts are reached. It will strengthen the healthcare system to effectively respond to evolving health needs, such as screening and treating hypertension and other conditions.
Apart from providing safe water through new and rehabilitated piped water connections to over one million people in the port city, the $280-million loan will be used to build about 200,000 new household water connections and provide improved sanitation services to about 100,000 people in low-income communities.
The project will also help Chattogram WASA improve operational efficiency and financial sustainability, as well as address issues related to water loss, such as high levels of leakage, metering inaccuracies, and illegal connections.
It will help strengthen the utility systems, financial performance, and creditworthiness by covering tariff roadmap and building Chattogram WASA’s capacity for long-term infrastructure and business- planning systems, data management, asset management, communications strategy, and disaster- preparedness.
Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan, said, “Bangladesh is among the most vulnerable countries to climate change and faces immense pollution challenges. Improving climate resilience in every sector and tackling pollution has become a critical development priority.”
The World Bank has made commitments of more than $45 billion in the International Development Association financing in the forms of grants, interest-free loans, and concessional credits to help the country address its development priorities.
In recent years, Bangladesh has been among the largest recipients of the World Bank’s interest-free credits. thefinancialexpress.com.bd
