$404m WB loan, grant for health, nutrition services

The government has signed a loan and grant agreement with the World Bank to improve the country’s health, nutrition and population services.

Under the agreement, the World Bank will provide $379 million in loan assistance, along with $25 million in grant support from the Global Financing Facility (GFF).

The financing will support two major projects under the Ministry of Health and Family Welfare, to be implemented between July 1, 2025 and June 30, 2029.

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

The project aims to improve the quality, accessibility and coverage of health and nutrition services across the country, with special emphasis on the Chattogram and Sylhet divisions, while strengthening the overall resilience and efficiency of the health system.

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

It aims to enhance the quality, equity and expansion of reproductive health and population services through climate-resilient systems and strengthened institutional frameworks.

The $379 million loan will be repayable over a period of 30 years, including a five-year grace period.

The financing carries a service charge of 0.75 percent per annum and an interest rate of 1.25 percent per annum on the disbursed amount.

A commitment fee of 0.50 percent per annum will apply to the undisbursed balance. However, the World Bank has refrained from collecting this fee in recent fiscal years.

Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and Jean Pesme, division director of the World Bank Group for Bangladesh and Bhutan, signed the agreement, according to a press release issued by the ERD.