Two agreements totaling $900 million have been signed with the World Bank

Bangladesh and the World Bank signed two financing agreements worth a total of $900 million on Sunday, aimed at promoting environmental sustainability, climate resilience—including in urban infrastructure—and fostering inclusive growth in the country.

“Bangladesh is one of the most vulnerable countries to climate change, affecting people in both rural and urban areas,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. “These two financing agreements will support Bangladesh in achieving green growth and building climate resilience across various sectors, including urban infrastructure. The World Bank remains a committed partner in helping Bangladesh reach its development goals while enhancing its resilience to climate change.”

The $500 million Second Bangladesh Green and Climate Resilient Development Credit will assist in policy reforms for transitioning the country toward green and climate-resilient development. It supports improvements in public planning, financing, and implementation of green and climate-resilient interventions at both local and national levels. The funding also encourages clean and resource-efficient production and services in key sectors.

The financing aims to reduce air pollution, strengthen environmental enforcement, expand access to carbon markets, improve sustainable water and sanitation services, enhance the Bangladesh Delta Plan 2100, and foster a climate-resilient and sustainable environment. It also includes promoting sustainable public procurement that considers environmental and social factors, improving energy efficiency in buildings and appliances, and encouraging a greener construction sector.

The $400 million Resilient Urban and Territorial Development Project will enhance climate-resilient, gender-responsive urban infrastructure and management capacities across seven city clusters. These clusters are located along an economic corridor covering over 950 kilometers from Cox’s Bazar in the south to Panchagarh in the north of Bangladesh. The project will benefit around 17 million people in the selected urban areas.

The initiative focuses on coordinated investments in climate-resilient infrastructure and planning across secondary cities. It will help develop strategically important corridors, create jobs, and prioritize the needs of female users. Infrastructure designs will feature green building elements such as rainwater harvesting. Grants will be provided to selected municipalities and city corporations to invest in climate-resilient and gender-responsive infrastructure. The project plans to build over 300 kilometers of footpaths, 10 regional bus terminals, 10 kitchen markets, 10 supermarkets, 10 parks, 10 community centers, 20 public toilets, 880 kilometers of urban roads, and 2,000 meters of bridges and culverts.

The agreements for the Second Bangladesh Green and Climate Resilient Development Credit and the Resilient Urban and Territorial Development Project were signed by Mr. Shahriar Siddiky, Secretary, and Mr. Farid Aziz, Additional Secretary of the Economic Relations Division, Government of Bangladesh, alongside Abdoulaye Seck representing the World Bank.