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The Bangladesh government has signed a US$300 million financing agreement with the World Bank to strengthen food security by ensuring timely availability of fertilizers for smallholder farmers during key planting seasons.
The agreement was signed on Monday between the Economic Relations Division (ERD) of the Ministry of Finance and the International Development Association (IDA), the World Bank’s concessional lending arm.
ERD Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of their respective sides, according to an official statement.
The Finance Division will implement the project in coordination with the Bangladesh Chemical Industries Corporation (BCIC) and the Bangladesh Agricultural Development Corporation (BADC). The project will be implemented from 01 July 2026 to 30 June 2027.
The project’s primary objective is to strengthen food security by ensuring the availability of eligible fertilizers, particularly for smallholder farmers, during critical planting periods, the statement added.
The financing carries an interest rate of 1.5 per cent on the withdrawn credit balance and a commitment fee of up to 0.50 per cent on the undrawn amount.
However, the World Bank has waived the commitment fee for Bangladesh for several years, including the current fiscal year.
The financing has a maturity period of 25 years, including a five-year grace period.
Currently, the World Bank financing is covering a wide range of sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector advancement.
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