Bangladesh and the World Bank signed two financing agreements worth $850 million on Wednesday to strengthen the South Asian country's trade capacity, create jobs and modernize its social protection system, the Washington-based global lender announced.
The bulk of the funding, $650 million, will support the Bay Terminal Marine Infrastructure Development Project, an initiative aimed at expanding and modernizing port facilities in the southeastern district of Chittagong.
The project will include constructing a 6-kilometer (3.7-mile) climate-resilient breakwater and access channels, allowing the port to accommodate larger vessels. This is expected to sharply reduce turnaround times, lower transportation costs and boost Bangladesh’s export competitiveness.
Officials estimate the improvements could save the economy around $1 million per day.
The Bay Terminal is projected to handle 36% of the nation’s container traffic, benefiting more than 1 million people by improving access to transport and regional markets. The project will also promote women’s participation in port operations and support women-led businesses in exploring trade opportunities.
"To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labor market every year," Gayle Martin, the World Bank's interim country director for Bangladesh, said in a statement.
The remaining $200 million will be allocated to the Strengthening Social Protection for Improved Resilience, Inclusion and Targeting project, which aims to deliver cash and livelihood services to 4.5 million vulnerable individuals. Its focus will be on youth, women, persons with disabilities and workers in climate-affected areas.
The project will establish a national registry to improve targeting and service delivery. It will also provide skills training, micro-credit and entrepreneurship mentoring.
The financing comes from the World Bank’s International Development Association (IDA), which has committed more than $45 billion to Bangladesh since its independence in 1971.
