Bangladesh and the World Bank have signed two financing agreements worth $900 million to promote environmental sustainability, climate resilience, and inclusive growth, particularly in urban infrastructure.
“Bangladesh is among the most vulnerable countries to climate change, impacting both rural and urban populations,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, in a press release. “These financings will help Bangladesh achieve green growth and climate resilience across various sectors, including urban infrastructure. The World Bank remains a committed partner in supporting Bangladesh’s development aspirations while strengthening its resilience to climate change,” he added.
$500 Million for Green Development
The $500 million Second Bangladesh Green and Climate Resilient Development Credit aims to support the country’s transition to green, climate-resilient development. The funds will back policy reforms to improve public planning, financing, and implementation of green initiatives at local and national levels. It will also promote resource-efficient production, reduce air pollution, expand access to carbon markets, and enhance sustainable water and sanitation services.
The financing aligns with the Bangladesh Delta Plan 2100 and supports sustainable public procurement, energy-efficient buildings, and green construction practices.
$400 Million for Urban Climate Resilience
The $400 million Resilient Urban and Territorial Development Project will focus on strengthening climate-resilient and gender-responsive urban infrastructure in seven city clusters along an economic corridor spanning 950 kilometers from Cox’s Bazar in the south to Panchagarh in the north. This project is expected to benefit approximately 17 million residents in the targeted areas.
Key investments include constructing 300 kilometers of footpaths, 880 kilometers of urban roads, 10 bus terminals, 10 markets, 10 parks, and 20 public toilets, among others. Infrastructure designs will prioritize female users and incorporate green features such as rainwater harvesting.
Long-standing Partnership with Bangladesh
The agreements were signed by Shahriar Siddiky and Farid Aziz from Bangladesh’s Economic Relations Division and Abdoulaye Seck on behalf of the World Bank.
As one of Bangladesh’s earliest development partners, the World Bank has committed over $45 billion in International Development Association (IDA) financing since the country’s independence. Bangladesh remains one of the largest recipients of interest-free credits from the World Bank, underscoring its critical role in the nation’s sustainable development.
