Dhaka, Bangladesh (BBN)- Bangladesh and the World Bank (WB) have signed two financing agreements totaling $850 million to help the country develop the Bay Terminal deep sea port and modernize the national social protection system to accelerate job creation and inclusive growth.
Two separate financing agreements were signed on Tuesday in Washington between the Economic Relations Division (ERD) of Bangladesh and the International Development Association (IDA), the World Bank's concessional arm.
The agreements were signed by Shahriar Siddiky, Secretary, ERD, Government of Bangladesh and Dr. Gayle Martin, WB Interim Country Director for Bangladesh, on behalf of Bangladesh and the World Bank, according to a press statement.
Dr. Salehuddin Ahmed, Finance Adviser of Bangladesh Government, and Martin Raiser, World Bank Vice President for South Asia, were also present at the signing.
Under the deal, the WB will provide $650 million to Bangladesh for the Bay Terminal Marine Infrastructure Development Project at Chattogram, the port city.
Another $200 million will go toward implementing a strengthening social protection for improved resilience, inclusion and targeting (SSPIRIT) project.
The Bay Terminal Marine Infrastructure Development Project will enhance Bangladesh’s export competitiveness by increasing port’s capacity and efficiency and reducing transportation costs and time.
It will support essential infrastructure for port development, including a 6 km climate-resilient breakwater and access channels. By accommodating larger vessels, the deep sea port will substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily.
The Bay Terminal will handle about 36 per cent of Bangladesh’s container volumes, directly benefiting over one million people by improving access to sustainable transport services and enhancing connectivity to regional and international markets, according to the WB.
The project will also facilitate women-owned enterprises to explore trade opportunities and women’s employment in port operations.
The SSPIRIT project will provide cash transfers and livelihood services for 4.5 million people, focusing on youth, persons with disabilities, women, and workers in climate-vulnerable regions.
The project will modernize delivery systems, ensuring support reaches those most in need and enabling effective responses to potential climate or economic shocks.
It will establish a national Dynamic Social Registry for accurate targeting of beneficiaries and for identifying individuals eligible for further support, such as livelihoods and employment services. By combining cash assistance with skills development and entrepreneurship, micro-credit, and mentorship, the project will improve job readiness and income earning capacities of about 2.5 million people.
The WB also said such a graduation strategy that allows poor households—with a focus on youth and women—to ‘move up the ladder’ is vital for Bangladesh’s labour market.
“To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2.0 million youth who enter the labour market every year,” said Gayle Martin. “This financing package will be a game changer for job creation by enhancing trade and export competitiveness and helping the most vulnerable graduate from social protection programs and get ready for the job market."
“Bangladesh and the World Bank have a strong and longstanding partnership to help the country achieve inclusive growth and its development aspirations,” said Shahriar Siddiky. “These projects will be critical for the country’s climate resilience and a prosperous future.”
BBN/SSR/AD