World Bank to Provide $150.75m for Bangladesh RAISE Project

The government of Bangladesh and the International Development Association (IDA) of the World Bank Group signed an additional financing and grant agreement yesterday for the “Recovery and Advancement of Informal Sector Employment (RAISE) Project.” The package includes a US$150 million loan and a US$0.75 million grant to support the initiative.

The RAISE Project, launched in 2021, is scheduled to continue until June 2026 under the existing World Bank support. The additional financing will extend the project’s implementation period until 31 December 2030.

Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) at the Ministry of Finance, and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan, signed the financing agreements on behalf of their respective organisations. The project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance, according to an ERD press release.

The project aims to provide services that enhance earning opportunities and employment for low-income urban and rural youth, including those affected by the Covid-19 pandemic.

The additional financing comprises a US$150 million loan from IDA and a US$0.75 million grant from the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF). The loan carries an interest rate of 1.5 percent, a commitment fee of up to 0.5 percent on the undisbursed balance, and a maturity period of 25 years, including a five-year grace period.

The World Bank is Bangladesh’s largest multilateral development partner. This financing underscores the strong cooperation between Bangladesh and the World Bank, which currently supports a broad range of sectors, including economic and social development, institutional reforms, infrastructure, and energy sector advancement.