Bid to Strengthen Local Governance
$290m loan deal signed with World Bank
The World Bank (WB) will provide $ 290 million to Bangladesh to finance the Second Local Governance Support Project to cover all 4,504 union parishads and benefit around 130 million population of the country.
Economic Relations Division (ERD) Secretary Iqbal Mahmood and World Bank country director Ellen Goldstein signed a loan agreement to this effect at the ERD conference room in the city's Sher-e-Bangla Nagar yesterday. Local Government Division Secretary Abu Alam Md Shahid Khan was also present.
Local Government Division (LGD) will implement the project to be completed by November 2016.
The total amount of the project is $ 545.39 million out of which the IDA of the World Bank will provide $ 290 million, while the rest will be provided by the government.
The objective of the project is to strengthen Union Parishads to make them more accountable and responsive, supported by an efficient and transparent intergovernmental fiscal transfer system.
Under the credit, Bangladesh will receive an amount of $ 290 million from the World Bank in concessionary term carrying 0.75 percent service charge on withdrawn amount and a repayment period of 40 years, including a 10-year grace period.
The project is built upon the success of the Local Governance Support Project, which was the first programme to strengthen the union parishads, the lowest tier of the local government.
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