WB to provide $50m loan for SIDR-affected families
FE Report | Friday, 1 August 2008
World Bank (WB) will provide Bangladesh US$ 50 million loan to help restore assets and livelihoods of families affected by the last year's cyclone Sidr.
The government of Bangladesh signed an agreement Thursday with International Development Association (IDA) for the loan, according to the WB statement.
Economic Relations Division (ERD) Additional Secretary Mohammad Mejbahuddin and WB Country Director Xian Zhu signed the agreement on behalf of their respective sides.
The $50 million in additional financing for the Social Investment Programme Project (SIPP) would support rehabilitation of the Sidr-affected families.
The additional financing would scale up support to the government in developing effective financing and institutional arrangements to empower the poorest and most vulnerable and improve their access to small-scale local infrastructure, assets and livelihoods.
The SIPP, which has already benefitted over 1,000 villages across the country, was identified as the best instrument for quickly channeling funds to support livelihoods restoration in the affected areas.
The operations under the additional funding will commence in the first week of August in four upazilas as pilot projects in the coastal areas. The project will cover 14 most affected upazilas and about 40-50 unions.
After the devastating cyclone Sidr, the WB offered $250 million short and medium term supports to help the millions of affected people to recover and to strengthen disaster mitigation systems.
Already $100 million was quickly disbursed as budget support in the last financial year. Another $100 million support is under preparation for delivery in fiscal 2009.
The credit from the IDA, the WB's concessionary wing, has 40 years to maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.
The government of Bangladesh signed an agreement Thursday with International Development Association (IDA) for the loan, according to the WB statement.
Economic Relations Division (ERD) Additional Secretary Mohammad Mejbahuddin and WB Country Director Xian Zhu signed the agreement on behalf of their respective sides.
The $50 million in additional financing for the Social Investment Programme Project (SIPP) would support rehabilitation of the Sidr-affected families.
The additional financing would scale up support to the government in developing effective financing and institutional arrangements to empower the poorest and most vulnerable and improve their access to small-scale local infrastructure, assets and livelihoods.
The SIPP, which has already benefitted over 1,000 villages across the country, was identified as the best instrument for quickly channeling funds to support livelihoods restoration in the affected areas.
The operations under the additional funding will commence in the first week of August in four upazilas as pilot projects in the coastal areas. The project will cover 14 most affected upazilas and about 40-50 unions.
After the devastating cyclone Sidr, the WB offered $250 million short and medium term supports to help the millions of affected people to recover and to strengthen disaster mitigation systems.
Already $100 million was quickly disbursed as budget support in the last financial year. Another $100 million support is under preparation for delivery in fiscal 2009.
The credit from the IDA, the WB's concessionary wing, has 40 years to maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.