IsDB to provide $56m for sanitation project

The Islamic Development Bank (IsDB) is set to provide $56 million to Bangladesh for an inclusive sanitation and hygiene programme.

Of the total assistance, $36.4 million will count as a loan while the remaining $19.6 million will be considered a grant, according to a press release from the Economic Relations Division (ERD).

The ERD and the IsDB yesterday inked an agreement for financing the "Inclusive Sanitation and Hygiene Project in 10 Priority Towns in Bangladesh" project.

Fatima Yasmin, secretary of the ERD, signed the agreement on behalf of her organisation. However, the ERD did not disclose the name of the IsDB official who signed on behalf of the bank.

According to the ERD, the purpose of the loan is to improve the quality of life and livelihoods for 1.4 million citizens of 10 select priority towns – Narsingdi, Shariatpur, Cumilla, Lakshmipur, Jamalpur, Natore, Pabna, Sirajgani, Bagerhat and Patuakhali.

The project aims to ensure safer, adequate, equitable, sustainable sanitation, hygiene, facilities and services across these towns with a special focus on the urban poor women and children.

The $36.4 million loan will bear an interest rate of approximately 3.20 per cent. The total financing will have a maturity period of 20 years, including a five-year grace period.

The IsDB has been providing financial assistance since its inception in the form of grants, project loans, trade financing, private sector financing, export credit guarantees and so on.

The IsDB's project financing in Bangladesh's public sector mainly focuses on sanitation, the water sector, education, power, rural infrastructure, poverty alleviation and agriculture.