DHAKA, March 15, 2022 (BSS) - The government of Bangladesh and World Bank
today signed a financing agreement under which the lending agency will
provide US$120 million for implementing the "Climate Smart Agriculture and
Water Management" project.

Economic Relations Division (ERD) Secretary Fatima Yasmin and Acting World
Bank Country Director Dandan Chen signed the agreement on behalf of their
respective sides.

The project, to be completed by June 2026, will be implemented jointly by the
Bangladesh Water Development Board (BWDB) under the Ministry of Water
Resources, Department of Agricultural Extension (DAE) under the Ministry of
Agriculture, and Directorate of Fisheries (DoF) under the Ministry of
Fisheries and Livestock.
 
Out of the total loan amount of US$120 million, some US$100 million will be
provided to the BWDB while US$10 million each to the DAE and DoF, said an ERD
press release here.

The World Bank will provide the loan from IDA19 Scale up Window (SUW).

The rate of interest is Reference rate + Fixed Spread with one time front end
fee 0.25 percent of the credit amount, commitment charge 0.25 percent per
annum on the undisbursed credit balance. The financing shall have a maturity
of 35 years, including a grace period of five years.

The purpose of the loan is to rehabilitate and modernize flood control
drainage and flood control drainage irrigation infrastructures for climate
resilient water resources management.

To promote more efficient use of water resources through on-farm water use
efficiency and adoption of climate smart agricultural practices under both
crop and fisheries production systems.
 
Moreover, the project will enhance agricultural productivity and around 50
percent irrigation water will be saved on the crop field through at least 12
climate smart technologies in the project area. It will also increase 20
percent of fish production and productivity by introducing climate smart
aquaculture technology.