Dhaka: The World Bank has approved US$1.1 billion in financing for two major projects aimed at helping Bangladesh address volatility in global fertilizer and fuel markets, safeguard food security and strengthen the country’s capacity to respond rapidly to economic shocks.
According to a World Bank press release, the financing comes as Bangladesh faces mounting economic pressure from rising food, fertilizer and fuel prices linked to the ongoing conflict in the Middle East, alongside tighter fiscal conditions.
“Rising food, fertilizer, and fuel prices stemming from the Middle East conflict, along with tighter fiscal space have deeply impacted Bangladesh’s economy, hitting smallholder farmers as well as poor and vulnerable people the hardest,” said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan.
“The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact to ensure fertilizer supply for rice production, protect households, jobs and livelihoods and continue with essential services,” he added.
Support for Food Security
The Emergency Support for Food Security Project, worth US$300 million, will provide time-bound financing to help Bangladesh import fertilizers required for the Aman (July–October 2026) and Boro (October 2026–April 2027) rice-growing seasons.
Bangladesh currently imports more than 85 percent of its fertilizer requirements. Under the project, the World Bank will finance the import of 600,000 metric tonnes of essential fertilizers, including 300,000 metric tonnes of urea, covering approximately 1.4 million hectares of rice cultivation by smallholder farmers.
“Bangladesh’s food security depends on Aman and Boro rice seasons, which together account for about 90 percent of the country’s total rice production. Further, about half the population is employed in the agriculture sector. Any disruption in fertilizer supply would not only threaten food security, it would deepen poverty and cost jobs,” said Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project.
Emergency Financing During Crises
The second initiative, the Contingent Emergency Response Project, valued at US$713 million, will finance rapid emergency expenditures, including cash transfers and livelihood support for affected households as well as micro, small and medium-sized enterprises (MSMEs).
The project will also support the import of fuel and energy supplies to ensure the uninterrupted delivery of essential services, including food distribution, healthcare, electricity and water supply. The financing is expected to be fully disbursed by June 30, 2026.
“This project will provide Bangladesh immediate access to funds through the World Bank’s crisis preparedness and response toolkit by repurposing unutilized financing from existing projects, directing resources where they are most needed and protecting people, businesses, and jobs from the impact of shocks,” said Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist and Task Team Leader for the project.
The World Bank said the two projects are designed to help Bangladesh maintain agricultural production, protect vulnerable communities and strengthen the country’s resilience against future global economic and supply chain disruptions.
