WB to provide $23m loan to support village communities, urban poor

FE Team | Published: June 22, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The World Bank (WB) will provide funding worth US$ 23 million (2.3 crore) to the government to support both village communities as well as the underserved segment of the urban poor in Dhaka city.
Two separate agreements were signed in this connection between the government and the WB at a simple ceremony at the Economic Relations Division (ERD) at Agargaon in the city Thursday.
ERD Secretary M Aminul Islam Bhuiyan and WB Country Director Xian Zhu signed the agreements on behalf of their respective sides.
The International Development Association (IDA), the concessionary arm of the WB, will provide the loan with a maturity period of 40 years with a grace period of 10 years and a service charge of 0.75 per cent.
Of the fund, $8 million will be made available to the ongoing Social Investment Programme Project (SIPP) and the remaining $15 million to the ongoing Second Poverty Alleviation Micro-finance Project (SPAMP).
The funding will help SIPP continue to support development of sustainable and effective institutional arrangements at the village level, WB sources said.
Being implemented by the Social Development Foundation since 2003, the SIPP has been involving the communities in the decision-making and implementation process.
On the other hand, the funding will help SPAMP offer microfinance services to the non-motorised transport pullers and poor rickshaw owners, affected earlier by the ban on non-motorised transports.
The SPAMP implementing agency Palli Karma-Sahayak Foundation (PKSF) will also arrange additional financing.