Bangladesh and World Bank Ink USD 850 Mn Agreement to Enhance Jobs and Trade

Bangladesh and the World Bank have signed two financing agreements totaling US$850 million to strengthen the South Asian country's trade capacity, create jobs, and modernize its social protection system, according to the Washington-based lender.

The majority of the $650 million will be used for the Bay Terminal Marine Infrastructure Development Project, which intends to modernize and expand port infrastructure in the southeast district of Chittagong.

The project will enable the port to accommodate larger vessels by building a 6km climate-resilient breakwater and access channels. Turnaround times should be greatly shortened, transportation expenses should be decreased, and Bangladesh's export competitiveness should increase.

According to officials, the upgrades could save the economy about $1 million every day.

The Bay Terminal is expected to handle 36% of the country's container traffic, benefiting over a million people by improving access to transportation and regional markets. The project will also encourage women to participate in port operations and assist women-led businesses in pursuing trade opportunities.

World Bank interim country director for Bangladesh Gayle Martin said in a statement that "Bangladesh needs to create quality jobs for its population, especially for the nearly 2 million young people who enter the labor force each year, in order to maintain a sustainable growth path."

The remaining $200 million will be used to support 4.5 million vulnerable individuals with livelihood and financial services through the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project. 

It will target youth, women, people with disabilities, and workers in climate-affected areas.

The project will set up a national registry to improve targeting and service delivery. It will also offer skill training, microcredit, and entrepreneurial mentoring.

The funding comes from the World Bank's International Development Association (IDA), which has committed over US$45 billion to Bangladesh since its independence in 1971.