The government wants four World Bank development projects and programme to be placed immediately before Executive Committee of National Economic Council (ECNEC) for approval so that the increased inflow of money to financial sector can infuse dynamism into economy amid COVID-19.
Prime Minister’s Office (PMO) on September 13 held a meeting with authorities concerned to discuss four World Bank (WB) projects which remained halted due to coronavirus pandemic for the last six months. The meeting was presided over by PMO Principal Secretary Dr Ahmad Kaikaus.
The principal secretary urged the secretaries concerned to take necessary steps for immediate approval of the development projects to increase inflow of money to the country’s finance sector.
The 1st one of the four global lender projects is Emergency Multi Sector Rohingya Crisis Response (EMRCR). Local Government Division sent revised Development Project Proposal (DPP) of EMRCR on September 6. The WB’s Board of Executive Directors approved additional financing for the EMRCR project on March 31. IDA-18 Regional Sub-Window for Refugees and Host Communities will finance $83.3 million while the government of Bangladesh will provide $16.67 million to the proposed additional financing.
The project will support the government of Bangladesh in responding to an emergency in Cox’s Bazar district caused by an influx of displaced Rohingya population from Myanmar. The project will benefit about 780,800 people, including 140,800 local people with better public infrastructure. This includes access to improved water sources for 365,800 people and better sanitation for 171,800 people.
The 2nd WB project is Western Economic Corridor and Regional Enhancement Programme (WECRE) Phase 1. Local Government Division will send revised Development Project Proposal (DPP) of WECRE Project while the Roads and Highway division sent DPP on September 7.
World Bank board of Executive Director on June 23 approved financing in the WECRE project. The total cost of project is $500 million with a 4-year grace period.
The objective of the phase I project is to provide efficient, safe, and resilient connectivity along a section of a regional transport corridor in western Bangladesh. Under the project the two-lane Bhomra-Satkhira-Navaron and Jashore-Jhenaidah highways will be upgraded into four-lane roads.
The project aims to upgrade the national highway corridor and enhance digital connectivity; upgrade secondary and tertiary roads to facilitate Covid-19 relief and recovery. Key expected outcomes include the improvement of transportation of passengers and goods, reduction in post-harvest losses for selected value chains, reduction in traffic fatalities on the corridor, and increase in climate resilience of the road network.
The third one is Bangladesh Enhances Digital Government and Economic Project (BEDGE).
Revised DPP of BEDGE Project will be sent to the Planning Commission within a short time. Board of WB approved that project on June 19. The total cost of the project is $305 million which will be ended on September 30, 2025.
And last of the four WB projects is Bangladesh Private Investment and Digital Entrepreneurship (PRIDE) Project. The PRIDE project will be placed before the ECNEC within a short time as the DPP of the project titled ‘Bangladesh Economic Zone Authority’ has been sent on September 10. Besides, the Bangladesh Hi-tech Park Authority will send DPP to Planning Commission. The World Bank board approved PRIDE Project on June 19 at a cost $500 million. Non-concessional term is a 4-year grace period and maturity is fixed at 34 years.
The project aims to promote private investment, job creation, and environmental sustainability in the economic zones and software technology parks of Bangladesh. The project will also create 150,000 jobs, establish Dhaka’s first digital entrepreneurship hub and attract domestic and foreign private investment thereby helping the economy to rebound from the impacts of COVID-19.
The WB’s support to Bangladesh through its International Development Association (IDA) window may reach $5 billion in the next three fiscal years, said sources at the Economic Relations Division (ERD) of the Ministry of Finance. In addition to $5 billion from the IDA, the country is eligible to receive an additional amount from the $2 billion sub-window for refugees and host communities. Bangladesh is also willing to utilize the Scale-up Facility (SUF) consisting of funds that remain unutilized by other countries.
The WB will provide $82 billion in the next three years to its lower-income and lower-middle-income member countries. In December last year, the IDA announced its new Package-19, which is 3 percent greater than Package-18.
Following a meeting with development partners at Stockholm in Sweden, the WB said, it would provide the amount for the July 2020-June 2023 period.
Bangladesh is preparing to implement at least 12 projects with the support of the WB, which will provide $3.02 billion to the South Asian country.
The bank will provide $170 million to implement the Dhaka Sanitation Improvement Project and $120 million for the Climate-Smart Agriculture and Water Management Project.
To implement the second phase of the Leveraging ICT Project, the World Bank will provide $300 million and $475 million to the Dhaka Public Transport Improvement Project.
ask/wi
