Bangladesh signs $850m deals with World Bank to boost trade, jobs
Bangladesh has signed two financing agreements worth $850 million with the World Bank to upgrade its port infrastructure and strengthen its social safety nets, the global lender announced on Wednesday.
The World Bank will provide $850 million in total financing to Bangladesh through two separate agreements aimed at expanding the country’s trade capabilities and supporting vulnerable communities.
The larger portion, $650 million, will fund the Bay Terminal Marine Infrastructure Development Project in Chittagong.
The project includes building a 6-kilometre breakwater and access channels to allow larger ships at the port, a move expected to cut shipping costs, reduce turnaround times, and improve export performance.
Government estimates suggest the terminal could save the national economy around $1 million daily.
Once operational, it is projected to handle 36% of Bangladesh’s container traffic and serve over one million people by improving access to trade and transport networks.
The VP of South Asia for World Bank Martin Raiser announced the development on his X (formerly Twitter) page.
Today we signed 2 agreements with #Bangladesh for projects totaling $850 million that will help create jobs, boost trade and modernize social protection for millions of #Bangladesh citizens. https://t.co/d818lmkkp0] pic.twitter.com/QaMHCQVN1n
The project also aims to promote gender inclusivity by encouraging women’s participation in port operations and facilitating opportunities for women-led businesses.
“To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labour market every year,” said Gayle Martin, the World Bank’s interim country director for Bangladesh.
The second agreement, worth $200 million, will support the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project.
It aims to assist 4.5 million vulnerable people, including youth, women, persons with disabilities, and workers in climate-affected regions.
This initiative will establish a national registry to enhance service delivery and provide access to cash support, skills training, micro-credit, and mentoring to promote entrepreneurship.
The financing is provided by the World Bank’s International Development Association (IDA), which has contributed more than $45 billion to Bangladesh since 1971.