Islamic Development Bank (IsDB) will provide US$56 million to improve sanitation and hygiene services for 1.4 million people of 10 priority towns in Bangladesh.
A loan deal in this regard was signed between Econmic Relation Division (ERD) and IsDB in Dhaka on Sunday.
Under the agreement, IsDB will provide $56 million, out of which $36.4 million is loan and S$ 19.6 million is grant, says a UNB report.
Fatima Yasmin, secretary of Economic Relations Division, ministry of finance has signed the agreement documents with IsDB.
The purpose of the loan is to improve quality of lives and livelihoods for 1.4 million citizens of ten selected priority towns including Narsingdi, Shariatpur, Cumilla, Lakshmipur, Jamalpur, Notore, Pabna, Sirajgani, Bagerhat and Patuakhali.
The project implementation will ensure safer, adequate, equitable, sustainable sanitation, hygiene, facilities and services with a special focus on the urban poor women and children in 10 towns of Bangladesh.
The $36.4 million loan shall bear an interest rate approximately 3.20 per cent. The total financing shall have a maturity of 20 years including a grace period of five years.
IsDB is one of the leading and trusted development partners of Bangladesh.
The purpose of the bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic Shari'ah.
Bangladesh is one of the founding members of the IsDB. The development partner has been providing financial assistance since its inception in the form of grant, project loan, trade financing, private sector financing, export credit guarantee etc.
As of now IsDB has approved approximately $22.51 billion. IsDB's project financing in the public sector of Bangladesh mainly focuses on sanitation, water sector, education, power, rural infrastructure, poverty alleviation and agriculture.