The World Bank has approved an aid of $410 million for Bangladesh to improve governance and basic urban services in district towns and municipalities.
The sum, which has to be repaid in 40 years, comes with a 10-year grace period and 0.75 percent service charge.
The multilateral lending agency said in a statement on Thursday that the aid is part of its Municipal Governance and Service Project.
It will provide supports to 26 urban government bodies with high economic growth and job-creation potential, along the corridors leading from Dhaka towards Chittagong, Rangpur, Sylhet and Mymensingh. It will also cover three southern district towns.
“Bangladesh experienced some of the most rapid urbanization in South Asia. Yet, the cities offer inadequate infrastructure and low levels of urban services, particularly in district towns and municipalities,” the statement quoted WB Country Director Johannes Zutt as saying.
Noting Bangladesh’s rise in urban population from 15% in 1980 to 28% in 2010, the statement said municipalities and towns in Bangladesh face challenges like weak finances and governance system, insufficient administrative capacity and inadequate basic urban services.
“Municipalities and towns play key roles in supporting economic growth, jobs creation and poverty reduction and are growing rapidly,” reads the statement.
The project aims to build roads, water and sanitation systems, markets, bus terminals, and municipal service centres in these places.
Source: Bd news24