The World Bank president has said that they would invest $2 billion in the next three years in Bangladesh for climate change projects.
This is his second investment announcement to Bangladesh during the two-day visit.
Earlier, Jim Yong Kim announced $1 billion for childcare in the country.
He also said that WB would finance bigger development projects besides the Padma Bridge.
“Competing in today’s digital economy requires a workforce with well-developed intelligence, which is why the World Bank Group wants to increase its investments to end stunting in Bangladesh as soon as possible,” said Kim.
The president emphasized on their understanding of the importance of Padma Bridge. However he clarified that since the government has already started the construction, World Bank will not fund it.
Kim made this statement about four years after implementation from the Padma multipurpose bridge project was called off. Almost $1.2 billion credit in support of the $2.9 billion was suspended by the four lending agencies led with the World Bank after allegations of corruption inside bidding process was reported. It created a chaos in the country as when completed would be the largest bridge and the largest ever physical infrastructure of Bangladesh as well as the first fixed river crossing for road traffic.
He made this comment on yesterday at a joint press briefing. Just before that, Kim attented a meeting at the finance ministry with Finance Minister Abul Mal Abdul Muhith.
“The growth of Bangladesh and all other aspects of the country’s development are extremely important for the us,” disclosed Kim.
He added that WB has plans to fund into Bangladesh aggressively; especially for the purpose of climate change. ”
However, he clarified that the global lender will instead spend the $1.2 billion (allocation for bridge funding) for the finance of climate change in Bangladesh.
“We will discuss in next two days how it can fund Bangladesh for tackling climate change. ”
Meanwhile, AMA Muhith said the complications with World Bank regarding the Padma Bridge fund is through for a while and now they maintain “good relations”.
“We expect more assistance from the International Development Association of the World Bank,” he said.
Notably Bangladesh is the largest recipient of funds from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries with 38 projects and a total commitment of more than $9.5 billion. Its private sector arm, IFC, has a committed portfolio of $1 billion and MIGA has $305 million in gross exposure in Bangladesh.
Since Bangladesh’s independence, the World Bank Group has been the country’s largest development partner in terms of volume of financing and provided more than $24 billion.
Source: Ittefaq