The government of Bangladesh has signed a $404 million loan and grant agreement with the World Bank Wednesday to bolster the country’s health, nutrition, and population sectors.
The agreement, part of the “Health, Nutrition and Population Sector Development Program (HNPSDP),” was signed by Secretary of the Economic Relations Division (ERD), Md Shahriar Kader Siddiky, on behalf of the government, and Division Director of the World Bank’s Dhaka office, Jean Pesme.
Under the deal, the World Bank’s International Development Association (IDA) will provide a loan of Special Drawing Rights (SDR) 284.70 million, equivalent to $379 million. In addition, a grant of $25 million will be provided from the Global Financing Facility (GFF).
The funding will support two specific projects under the Ministry of Health and Family Welfare, scheduled for implementation between 1 July 2025, and 30 June 2029.
The “Health and Nutrition Services Improvement and System Strengthening Project” will be implemented by the Directorate General of Health Services (DGHS) under the Health Services Division.
This project aims to strengthen health management capacity and resilience. It focuses on increasing the effectiveness and reach of health services, particularly ensuring quality and availability in the Chattogram and Sylhet divisions.
The “Climate Responsive Reproductive Health and Population Services Improvement and System Strengthening Project for Results” will be implemented by the Directorate General of Family Planning (DGFP) under the Medical Education and Family Welfare Division.
The primary objective of the project is to strengthen climate-resilient systems and management frameworks to enhance the quality, efficiency, and equity of reproductive health and population services.
The $379 million loan is repayable over 30 years, which includes a five-year grace period. The loan carries an annual service charge of 0.75 per cent and an interest rate of 1.25 per cent on the withdrawn amount.
Furthermore, a commitment fee of 0.50 per cent per annum is applicable on unwithdrawn loan amounts. However, World Bank has refrained from collecting this fee for a significant period, including the current fiscal year.
