Bangladesh has signed two loan deals worth $850 million with the World Bank to develop the Bay Terminal, a major marine terminal in Chattogram, and modernise the national social protection system.
Of the loan deals, a $650-million loan is for implementing the Bay Terminal Marine Infrastructure Development Project and a $200-million loan for implementing the Strengthening Social Protection for Improved Resilience, Inclusion and Targeting Project, according to a release issued by the Economic Relation Division on Thursday.
The WB in a release on the same day said that the Bay Terminal Marine Infrastructure Development Project in Chattogram would enhance Bangladesh鈥檚 export competitiveness by increasing port鈥檚 capacity and efficiency and reducing transportation costs and time.
The Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting Project will provide 4.5 million people with cash transfer and livelihood services, focusing on youth, persons with disabilities, women and workers in climate-vulnerable regions.
ERD secretary Shahriar Kader Siddiky and WB country director (interim) Gayle H Martin signed the loan deals in Washington on April 23.
Finance adviser Salehuddin Ahmed and WB vice-president for South Asia Martin Raiser were also present at the signing ceremony.
The loan deal on the Bay Terminal will help the government to end its persuasion for necessary fund over 12 years to develop it.
It has been assessed by the WB that the Bay Terminal would handle about 36 per cent of the country鈥檚 container volumes.
By accommodating larger vessels, the deep sea port will substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily, said the WB.
The loan deal was signed three days after the executive committee of the National Economic Council on Sunday approved Tk聽13,525.57-crore Bay Terminal Marine Infrastructure Development Project.
At a post-ECNEC briefing, planning adviser Wahiduddin Mahmud said that four terminals would be operated under the Bay Terminal.
The terminal 1 and the terminal 2 would be operated by a company from Singapore and a DP World from the United Arab Emirates, he said.
Under the $200 million Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting Project, cash transfers and livelihood services will be given to 4.5 million people, focusing on youth, persons with disabilities, women, and workers in climate-vulnerable regions, said the WB.
The project will modernise 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.