Dhaka, Bangladesh (BBN)- The World Bank has approved US$290 million concessional loan for implementing the Second Local Governance Support Project (LGSP II) to strengthen Union Parishads, the lowest tier of rural local government.
The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period. It carries a service charge of 0.75 percent, a World Bank press statement said on Wednesday.
The project, built on the success of LGSP I, will further strengthen local-level accountability and support development initiatives prioritisd by local communities.
With its nationwide coverage to all Union Parishads, the LGSP II is expected to benefit 135 million people across the country, the World Bank said.
It also said the project will strengthen coordination among different sub-national tiers (Union, Upazila and Zila) as well as support institutional development across the entire local government system.
“The Union Parishads will also be held more accountable to local communities through strengthened local wards and committees,” it noted.
BBN/SSR/AD-01Dec11-12:22 am(BST)