An additional financing agreement and a grant agreement were signed on Sunday between the Government of Bangladesh and the International Development Association (IDA) of the World Bank Group, providing a US$150 million loan and a US$0.75 million grant for the implementation of the Recovery and Advancement of Informal Sector Employment (RAISE) Project.
The project has been under implementation since 2021 and is scheduled to continue until June 2026 with World Bank support. The implementation period for the additional financing will run until 31 December 2030.
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) of the Ministry of Finance, and Jean Pesme, the World Bank’s Division Director for Bangladesh and Bhutan, signed the agreements on behalf of their respective organisations. The project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance, according to an ERD press release issued on Monday.
The objective of the project is to provide services that enhance earning opportunities and employment for low-income urban and rural youth, including those affected by Covid-19.
The additional financing consists of a US$150 million loan from IDA and a US$0.75 million grant from the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF).
The loan carries an interest rate of 1.5 per cent, a commitment fee of up to 0.50 per cent on the undisbursed balance, and a maturity period of 25 years, including a five-year grace period.
The World Bank remains Bangladesh’s largest multilateral development partner. This financing reflects the strong cooperation between Bangladesh and the World Bank, whose support currently spans a wide range of sectors, including economic and social development, institutional reform, infrastructure development and energy sector advancement.
