The government has signed a $300 million financing agreement with the International Development Association (IDA) of the World Bank Group to implement the “Emergency Support for Food Security Project”.
The agreement, equivalent to SDR 219.2 million, was signed between the Government of Bangladesh and IDA. The project will be implemented from July 1, 2026 to June 30, 2027.
Economic Relations Division (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.
The Finance Division will implement the project in coordination with Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).
According to an ERD press release, the project aims to strengthen food security by supporting the availability of eligible fertilisers, particularly for smallholder farmers, during planting seasons.
The financing carries an interest rate of 1.5 percent per annum on the withdrawn credit balance and a maximum commitment fee of 0.50 percent per annum on the undisbursed financing balance. However, the World Bank has been waiving the commitment fee for Bangladesh for several years, including the current fiscal year.
The loan has a 25-year maturity period, including a five-year grace period.
The World Bank is the largest multilateral development partner of Bangladesh, with its financing supporting a wide range of areas including economic and social development, institutional reforms, infrastructure and energy sector development.
