Signing of an agreement with the World Bank for a loan of 300 million dollars

The loan will be provided to implement the “Local Government Covid-19 Response and Recovery Project (LGCRRP)”

TBS Report

07 August 2022, 19:15

Last modification: August 07, 2022, 10:30 p.m.

World Bank photo. Photo: Collected

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World Bank photo. Photo: Collected

A $300 million loan financing agreement was signed yesterday between Bangladesh and the World Bank Group’s International Development Association (IDA) at the Economic Relations Division (ERD).

The loan will be provided to implement the “Local Government Covid-19 Response and Recovery Project (LGCRRP),” a press release said.

The project will be implemented by the Local Government Engineering Department under the Local Government Division.

The implementation period of this project is from January 2022 to December 2025.

Sharifa Khan, Secretary of the ERD, and Mercy Miyang Tembon, Country Director of the World Bank, signed the agreement on behalf of their respective parties.

The loan is repayable in 30 years with a grace period of five years.

The service charge is 0.75% and the interest charge is 1.25% per annum on the withdrawal balance of the SDR-denominated loan.

The commitment fee can be as high as 0.50%, but the World Bank has long waived commitment fees.

The main objective of the project is to strengthen the capacity of city-centric local government institutions to deal with the Covid-1 9 pandemic, expand the reach of health services and ensure access to civic amenities. essential (water supply, waste management, sanitation and drainage).

In addition, through the project, revenue management based on information technology will be developed, aimed at increasing the vaccine distribution program and the self-generated revenue of municipal corporations and municipalities.

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