DHAKA: Bangladesh and the World Bank on Wednesday (Apr 23) signed two financing agreements worth US$850 million to strengthen the South Asian country’s trade capacity, create jobs, and modernise its social protection system, the Washington-based global lender said.
The bulk of the funding, US$650 million, will support the Bay Terminal Marine Infrastructure Development Project, an initiative to expand and modernise port facilities in the southeastern district of Chittagong.
The project will include constructing a 6km climate-resilient breakwater and access channels, allowing the port to accommodate larger vessels. This is expected to sharply reduce turnaround times, lower transportation costs, and boost Bangladesh’s export competitiveness.
Officials estimate the improvements could save the economy around US$1 million per day.
The Bay Terminal is projected to handle 36 per cent of the nation’s container traffic, benefiting more than one million people by improving access to transport and regional markets. The project will also promote women’s participation in port operations and support women-led businesses in exploring trade opportunities.
“To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labour market every year,” Gayle Martin, the World Bank’s interim country director for Bangladesh, said in a statement.
The remaining US$200 million will go toward the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project, which will deliver cash and livelihood services to 4.5 million vulnerable people. Its focus will be on youth, women, persons with disabilities, and workers in climate-affected areas.
The project will establish a national registry to improve targeting and service delivery. It will also provide skills training, micro-credit, and entrepreneurship mentoring.
The financing comes from the World Bank’s International Development Association (IDA), which has committed more than US$45 billion to Bangladesh since its independence in 1971.
