The World Bank has approved a $1.1 billion financing package for two projects aimed at helping Bangladesh manage global fertiliser and fuel market volatility, protect food security and strengthen the country's ability to respond to emergencies.
In a statement on Saturday, the lender said the package includes a $300 million Emergency Support for Food Security Project and a $713 million Contingent Emergency Response Project.
The food security project will provide time-bound financing to help Bangladesh import fertilisers needed for the Aman and Boro rice seasons between July and October 2026 and October 2026 and April 2027, respectively.
The project will finance the import of 600,000 metric tonnes of essential fertilisers, with urea accounting for half of the total. The supplies are expected to support rice cultivation across 1.4 million hectares farmed by smallholder farmers.
“Rising food, fertiliser, and fuel prices stemming from the Middle East conflict, along with tighter fiscal space, have deeply impacted Bangladesh’s economy, hitting smallholder farmers as well as poor and vulnerable people the hardest,” said Jean Pesme, the World Bank’s Division Director for Bangladesh and Bhutan.
“The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact to ensure fertiliser supply for rice production, protect households, jobs and livelihoods and continue with essential services,” he added.
Souleymane Coulibaly, the World Bank’s Lead Economist and Task Team Leader for the project, said Bangladesh’s food security relied heavily on the Aman and Boro rice seasons, which together account for about 90 per cent of the country’s total rice production.
“Further, about half the population is employed in the agriculture sector. So, any disruption in fertiliser supply would not only threaten food security; it would deepen poverty and cost jobs,” he said.
The Contingent Emergency Response Project will provide rapid financing for emergency spending, including cash transfers and livelihood assistance for affected households and micro, small and medium-sized enterprises. It is intended to help stabilise incomes and protect jobs during crises.
The project will also finance fuel and energy supplies to maintain essential services, including food distribution, medicines, medical equipment, energy and water. The World Bank said the project is scheduled to disburse funds by June 30, 2026.
“This project will provide Bangladesh immediate access to funds through the World Bank’s crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed, and protecting people, businesses, and jobs from the impact of shocks,” said Lesley Jeanne Yu Cordero, the World Bank’s lead disaster risk management specialist and task team leader for the project.
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