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The World Bank will provide Bangladesh with $300 million in financing to support food security and ensure the availability of fertilisers for smallholder farmers during planting seasons.
A financing agreement for SDR 219.2 million, equivalent to $300 million, was signed on Monday between the Government of Bangladesh and the International Development Association (IDA), the World Bank Group’s concessional lending arm, to implement the Emergency Support for Food Security Project.
The project will run from July 1, 2026 to June 30, 2027 and will be implemented by the Finance Division in coordination with the Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).
Economic Relations Division Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of their respective sides.
According to the ERD, the project aims to contribute to food security by supporting the availability of eligible fertilisers, particularly for smallholder farmers, during planting seasons.
The financing carries an interest rate of 1.5% per annum on the withdrawn credit balance, along with a maximum commitment fee of 0.5% per annum on the undrawn financing balance.
However, the World Bank has waived the commitment fee for Bangladesh for many years, including the current fiscal year, according to the ERD.
The financing has a maturity period of 25 years, including a five-year grace period.
The World Bank is Bangladesh’s largest multilateral development partner. Its financing currently supports a wide range of areas, including economic and social development, institutional reforms, infrastructure and energy sector development.
The latest financing agreement reflects continued cooperation between Bangladesh and the World Bank in addressing the country’s development and food security needs.
