The World Bank provided $120 million loan to Bangladesh for financing the “Climate Smart Agriculture and Water Management” project.
Fatima Yasmin, Secretary of Economic Relations Division, Ministry of Finance and Dandan Chen, acting country director of the World Bank, Dhaka office have signed the agreement on behalf of their respective sides, an ERD press release said on Tuesday.
The project will be implemented jointly by Bangladesh Water Development Board (BWDB) under Ministry of Water Resources (MoWR), Directorate of Agricultural Extension (DAE) under Ministry of Agriculture and Directorate of Fisheries (Dof) under Ministry of Fisheries and Live Stocks.
The closing date of the project is on 30 June 2026.
Of the total loan amount of $120 million, $100 million will be provided to BWDB and $ 10 million will be provided to DAE and Dof each.
The WB will provide the loan from IDA12 Scale-Up Window (DUW). The rate of interest is Reference rate+ Fixed Spread with one time Front-end Fee 0.25 percent of the credit amount, Commitment charge 0.25 percent per annum on the Undisbursed Credit Balance.
The financing shall have a maturity of 35 years, including a 5-year grace period.
The purpose of the loan is to rehabilitate and modernize Flood Control Drainage (FCD) and Flood Control Drainage Irrigation (FCDI) infrastructure for climate-resilient water resources management.
To promote more efficient use of water resources through on-farm water use efficiency and adoption of Climate-Smart Agricultural (CSA) practices under both crop and fisheries production systems.
Moreover, the project will enhance agricultural productivity and around 50 percent imigation water will be saved in the crop field through at least 12 climate smart technologies in the project area and increase 20 percent of fish production and productivity by introducing climate smart aquaculture technology.
