Diplomatic Correspondent //

The International Development Association (IDA)—an arm of the World Bank—will provide a loan of US$300 million to Bangladesh to implement the ‘Emergency Support for Food Security Project,’ aimed at ensuring the country’s food security.

On Monday (October 5), a financing agreement worth 219.2 million Special Drawing Rights (SDR)—equivalent to approximately US$300 million—was signed between the Government of Bangladesh and the World Bank Group’s IDA for this purpose.

A press release issued today by the Economic Relations Division (ERD) stated that the project’s implementation period has been set from July 1, 2026, to June 30, 2027.

Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) under the Ministry of Finance, and Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, signed the agreement on behalf of their respective sides.

The Finance Division (FD), the Bangladesh Chemical Industries Corporation (BCIC), and the Bangladesh Agricultural Development Corporation (BADC) will jointly implement the project.

The release noted that the project’s primary objective is to strengthen food security in the country by ensuring the supply of fertilizers at affordable prices to farmers—particularly small and marginal ones—during the planting season.

Under the terms of the agreement, an annual interest rate of 1.5 percent will apply to the disbursed loan amount. Additionally, while a commitment fee of up to 0.50 percent per annum is stipulated for the undisbursed loan balance, the World Bank has long waived this fee for Bangladesh; the fee has been waived for the current fiscal year as well. The loan must be repaid within 25 years, including a five-year grace period.

The World Bank is one of Bangladesh’s key multilateral development partners. This financing further strengthens the cooperative relationship between Bangladesh and the World Bank. Currently, activities are being carried out in Bangladesh under World Bank funding across various important projects, including economic and social development, institutional reform, infrastructure construction, and the energy sector.

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