WB to lend $295m to Bangladesh

The World Bank will provide $295 million to Bangladesh to create an environment for the digital economy and improve cyber security.

The Information Communication and Technology Division took the ‘Enhancing Digital Government & Economy (EDGE)’ project, which the Bangladesh Computer Council will implement from January 2022 to December 2026.

Of the estimated Tk 2,541.64 crore cost, the government will provide Tk 34.59 crore while the rest of Tk 2,507.05 crore will come from the International Development Association of the World Bank.

A loan agreement was signed on Sunday between the Economic Relations Division (ERD) and the World Bank at the ERD office in Dhaka. IDA will provide $295 million Scale Up Facility loan to implement the project.

ERD Secretary Fatima Yasmin and World Bank Country Director Mercy Miyang Tembon signed the financing agreement for their respective sides.

The loan is repayable in 34 years with a grace period of four years. The Front-end Fee is 0.25 per cent, the Commitment Charge is 0.25 per cent and the Interest Charge is URIBOR+0.98 per cent.

The project’s main objectives are to improve cyber security, build resiliency during future crises, and enable the government to operate virtually to deliver critical public services to citizens and businesses to reduce vulnerabilities from the pandemic and prepare for the FIR. The project will also help digitalise small and medium enterprises and strategic industries and establish a Digital Leadership Academy to create opportunities for research and development.