Islamic Development Bank (IDB) will provide $56 million to improve sanitation and hygiene services for 1.4 million people of 10 priority towns in Bangladesh.
A loan deal in this regard was signed between Economic Relations Division (ERD) and IDB in Dhaka on Sunday.
Under the loan agreement, IDB will provide $56 million, out of which $36.4 million in loan and $19.6 million in grant.
Fatima Yasmin, secretary to the Economic Relations Division under the Ministry of Finance, signed the agreement documents with IDB.
The purpose of the loan is to improve the quality of life and livelihoods for 1.4 million citizens of 10 selected priority towns, including Narsingdi, Shariatpur, Cumilla, Lakshmipur, Jamalpur, Natore, Pabna, Sirajgani, Bagerhat and Patuakhali.
The project implementation will ensure safer, adequate, equitable, sustainable sanitation, hygiene, facilities and services with a special focus on the urban poor women and children in the towns of Bangladesh.
The $36.4 million loan shall bear an interest rate of approximately 3.20 per cent. The total financing shall have a maturity of 20 years, including a grace period of five years.
IDB is one of the leading and trusted development partners of Bangladesh.
The purpose of the bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic shari’ah.
Bangladesh is one of the founding members of the IDB.
The development partner has been providing financial assistance since its inception in the form of grant, project loan, trade financing, private sector financing, export credit guarantee etc.
As of now, IDB has approved approximately $22.51 billion.
IDB’s project financing in the public sector of Bangladesh mainly focuses on sanitation, water sector, education, power, rural infrastructure, poverty alleviation and agriculture.
