The International Development Association (IDA), a concern of the World Bank, will provide 120 million US dollars for the development of a 'climate-smart agriculture and water management project.’
Bangladesh and the World Bank on Tuesday signed a loan agreement in this regard held at the Economic Relations Division (ERD), a wing of the Ministry of Finance.
Fatima Yasmin, Secretary, ERD Dandan Chen, acting country director of the World Bank, Dhaka Office signed the agreement on behalf of their respective sides, reports UNB.
The project will be implemented jointly by Bangladesh Water Development Board (BWDB) under the Ministry of Water Resources, Department of Agricultural Extension (DAE) under the Ministry of Agriculture and Directorate of Fisheries under the Ministry of Fisheries and Livestock.
The project is likely to end in June 2026.
Of the total loan amount, $100 million will be provided to the BWDB and $10 million to the DAE and the DoF each.
The WB will provide the loan from IDA19 Scale-Up Window (SUW). The financing will have a maturity of 35 years, including a 5-year grace period, said a handout.
The purpose of the loan is to rehabilitate and modernise Flood Control Drainage (FCD) and Flood Control Drainage Irrigation (FCDI) infrastructure for climate-resilient water resources management.
Moreover, the project will enhance agricultural productivity and around 50 per cent of irrigation water will be saved in the crop field through at least 12 climate-smart technologies in the project area and increase 20 per cent of fish production and productivity by introducing climate-smart aquaculture technology.
The WB has been providing development assistance to Bangladesh in many important sectors including health & education, energy sector, inland connectivity & logistics, regional & global integration, urbanisation and adaptive delta management sector since after having membership in 1972.