DHAKA, June 10, 2026 (BSS) - Bangladesh today signed a financing agreement 
worth US$404 million with the World Bank (WB) to support the development of 
the country's health, nutrition and population sector.

The agreement was signed under the Health, Nutrition and Population Sector 
Development Program (HNPSDP), financed by the World Bank Group's 
International Development Association (IDA).

Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky signed 
the loan and grant agreement on behalf of the Government of Bangladesh, while 
Jean Pesme, Division Director of the World Bank Office in Dhaka, signed on 
behalf of the World Bank at a function at ERD in the city, said a press 
release.

Under the agreement, the World Bank will provide SDR 284.70 million 
(equivalent to US$379 million) in concessional loan assistance.

In addition, the Global Financing Facility (GFF) will provide a US$25 million 
grant, bringing the total financing package to US$404 million.

The financing will support two projects under the Ministry of Health and 
Family Welfare during the period from July 1, 2025, to June 30, 2029.

The first project, "Health and Nutrition Services Improvement and System 
Strengthening Project," will be implemented by the Directorate General of 
Health Services under the Health Services Division. 

The project aims to strengthen health system capacity and resilience while 
improving the quality, accessibility and effectiveness of health and 
nutrition services nationwide, with particular focus on the Chattogram and 
Sylhet divisions.

The second project, "Climate Responsive Reproductive Health and Population 
Services Improvement and System Strengthening Project for Results," will be 
implemented by the Directorate General of Family Planning under the Health 
Education and Family Welfare Division.

The project seeks to enhance the quality, efficiency and equity of 
reproductive health and population services by strengthening climate-
resilient systems and institutional management frameworks.

According to the agreement, the IDA loan will be repayable over 30 years, 
including a five-year grace period.

The loan will carry a 0.75 percent annual service charge on the withdrawn 
amount and an annual interest rate of 1.25 percent. 

A 0.50 percent annual commitment fee will also apply to undisbursed loan 
balances.

However, officials noted that although the provision for a commitment fee 
exists, the World Bank has refrained from collecting the fee for many years, 
including the current fiscal year.

The financing is expected to support Bangladesh's efforts to strengthen 
healthcare delivery, improve nutrition outcomes, expand reproductive health 
services and enhance the resilience of the health system against climate-
related challenges.