$1.74b WB soft loan likely this year

The World Bank (WB) is likely to provide nearly US$1.74 billion in soft loans this fiscal (2015-16) for development of Bangladesh's infrastructure and cutting poverty, officials said Monday.

Economic Relations Division (ERD) officials said they are expecting the WB funds for implementing at least 11 development projects.

"We are hopeful about concluding the loan deals within this fiscal," said a senior ERD official.

He said a deal on $600 million loan for the riverbank improvement programme is likely to inked within a couple of months. The negotiation for the loan was completed on August 12 last.

The Bangladesh government is also going to continue the existing National Agricultural Technical Programme (NATP) under which the WB has assured the former of providing $177 million credit.

In the second phase of this programme, the government would work for development of agricultural sector.

The Bank is expected to bankroll two power generation projects under its lending plan for the current fiscal.

It is also likely to offer $250 million in loans for re-powering the Ghorasal (unit-4) power plant and $165 million for Siddhirganj power plant projects.

The government is also expecting $120 million for the regional connectivity project of the shipping ministry from the WB.

It will also provide $200 million for the education sector development under two separate projects in the current fiscal, the ERD official said. "We are in different stages of discussions with the World Bank for getting confirmation of the assistance. We are hopeful that deals for those funds will be signed within this fiscal," said Additional Secretary of the ERD Kazi Shofiqul Azam.

He told the FE that the WB's concessional loans will help develop the country's infrastructure and slash poverty on payment of very nominal service charges.

The WB in the last FY2014-15 made commitment to provide nearly $1.8 billion grants and loans for upgrading infrastructure and cutting hunger.

The Bank is the largest development partner of Bangladesh with its nearly $1.5 billion annual commitment and more than $700 million disbursement on an average.

The WB's current portfolio in Bangladesh comprises more than 40 projects with nearly $7.0 billion loans and grants.

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