On Wednesday, Bangladesh and the World Bank signed two financing agreements totaling $850 million aimed at enhancing the country’s trade capacity, creating jobs, and modernizing its social protection system.
The majority of the funding, $650 million, will go towards the Bay Terminal Marine Infrastructure Development Project, designed to expand and upgrade the port facilities in Chattogram, according to the Washington-based lender.
This project will include the construction of a 6-km (3.7-mile) climate-resilient breakwater and access channels, enabling the port to accommodate larger vessels. This is expected to significantly reduce turnaround times, lower transportation costs, and enhance Bangladesh’s export competitiveness.
Officials estimate that the improvements could save the economy about $1 million daily.
The Bay Terminal is expected to handle 36 percent of the country’s container traffic, benefiting over one million people by improving access to transport and regional markets. The project will also encourage more women’s involvement in port operations and support women-led businesses in seizing trade opportunities.
“Bangladesh must create quality jobs for its population to stay on a sustainable growth path, especially for the nearly 2 million youth entering the labor market annually,” said Gayle Martin, the World Bank’s interim country director for Bangladesh, in a statement.
The remaining $200 million will fund the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project, which aims to provide cash and livelihood services to 4.5 million vulnerable individuals. The focus will be on youth, women, persons with disabilities, and workers in climate-impacted areas.
The project will establish a national registry to enhance service delivery and targeting. It will also offer skills training, micro-credit, and entrepreneurship mentoring.
The financing is provided by the World Bank’s International Development Association (IDA), which has contributed more than $45 billion to Bangladesh since its independence in 1971.
