The government has signed a $120 million loan agreement with the World Bank Group’s International Development Association (IDA) to implement a “Climate Smart Agriculture and Water Management” project.
The Scale-Up Window (SUW) loan, signed on March 15, will be jointly implemented by the Bangladesh Water Development Board (BWDB), the Directorate of Agricultural Extension (DAE) and the Directorate of Fisheries (DoF), read a press release press release from the Ministry of Finance.
Economic Relations Division Secretary Fatima Yasmin and World Bank Acting Country Director Dandan Chen signed the agreement on behalf of their respective parties.
Of the total loan amount, $100 million will be paid to BWDB and $10 million each will be paid to DAE and DoF. The project must be completed by June 30, 2026.
The objectives of this project are to rehabilitate and upgrade drainage and drainage irrigation and flood control (FCDI) infrastructure for climate-resilient water resource management, promote more efficient use of water resources, on-farm water and the adoption of climate-smart agricultural systems. (CSA) for crops and fisheries.
The project will help improve agricultural productivity and save about 50% of irrigation water in cultivated fields, using at least 12 climate-smart technologies in the project area. It will increase fish production by around 20% by introducing climate-smart aquaculture technology.
The amount of credit to be repaid in 35 years (with a grace period of five years) will have an interest rate of 0.25% on the amount of credit, with a commitment fee of 0.25% on any balance undisbursed creditor.
Since joining in 1972, Bangladesh has so far received about 29% of all its foreign aid from the World Bank.