WB to provide $ 500m for rural connectivity, logistic infrastructure development

The World Bank will provide Bangladesh with USD 500 million for developing rural connectivity, market, and logistic infrastructure in light of the economic prospect created with the construction of the Padma Bridge.

Bangladesh Government's Economic Relations Division (ERD) Secretary Fatima Yasmin and World Bank's Country Director at Dhaka office Mercy Miyang Tembon signed the agreement to this end today at the ERD office in the capital, according to a press release issued by the ERD.

The World Bank Group's International Development Association (IDA) will release the fund from its IDA-18 Scale-Up Facility (SUF) to implement 'Western Economic Corridor and Regional Enhancement Programe (WeCARE) Phase-I: Rural Connectivity, Market and Logistic Infrastructure Improvement Project (RCMLIIP)'.

The project, approved by the World Bank Board on June 23 last year and in the ECNEC meeting on November 24 last year, will be jointly implemented by Road Transport and Highways Division (RTHD) with USD 318.5 million, and Local Government (LGD) with USD 181.5 million. The project is set to close on December 31, 2026.

With Padma Bridge opening up a new horizon of economic potential for Bangladesh, the government and the World Bank adopted a programme for the 2020-2030 period to upgrade rural communication in a bid to facilitate and ensure overall socio-economic development.

Under this programme, a 260-kilometre national highway from Hatikumrul in Sirajganj and Bhomra land port in Satkhira will be upgraded from two-lane to four-lane with service lane by RHD, while logistics infrastructure of selected markets, growth centres, connected road networks for agriculture value chains and associated amenities will be upgraded by LGED.