WB Grants $270m Loan to Boost Bangladesh’s Recovery Plans

The government of Bangladesh on Sunday signed a $270 million financing agreement with the International Development Association (IDA), the concessional arm of the World Bank, to support sustainable recovery and disaster preparedness.

The funding will be used to implement the "Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG)."

Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Gayle Martin, Acting Country Director of the World Bank in Dhaka, signed the agreement on behalf of their respective sides.

According to a press release, the project will run from July 2025 to December 2030 and aims to rebuild infrastructure damaged during the devastating August 2024 floods, as well as support the recovery of affected farmers.

B-STRONG has five components and will be implemented by several agencies: Bangladesh Water Development Board (BWDB) under the Ministry of Water Resources, Department of Agricultural Extension (DAE) and Bangladesh Agricultural Development Corporation (BADC) under the Ministry of Agriculture, Department of Disaster Management (DDM) under the Ministry of Disaster Management and Relief, Local Government Engineering Department (LGED) under the Local Government Division and Social Development Foundation (SDF) under the Financial Institutions Division.

Beyond reconstruction, the project also focuses on strengthening flood resilience, reducing future disaster risks, and supporting long-term agricultural and economic development.

The loan carries a 30-year repayment term, including a five-year grace period. The service charge is 0.75%, and the interest rate is 1.25% annually on the outstanding balance. While a commitment fee of up to 0.50% is stipulated, the World Bank has been waiving such fees in recent years.

As Bangladesh’s largest multilateral development partner, the World Bank has committed over $43.5 billion since the country’s independence. Currently, the bank is funding $13.1 billion across 47 ongoing projects spanning economic development, infrastructure, institutional reforms, and the energy sector.