WB to give over $8b in next 4yrs

GBDESK//

The World Bank Group is set to provide Bangladesh with upwards of $2 billion every year over the next four years to help the country gear up for its next phase of development.

The lending plan has been outlined in the new country partnership framework (CPF) for 2023-27, which will be approved by the WB board ahead of Prime Minister Sheikh Hasina’s visit to Washington DC to mark 50 years of partnership with the multilateral lender.

In recent years, the WB has been committing to up to $2 billion a year.

The upcoming CPF, which has been prepared in consultation with a wide range of stakeholders, is anchored in the government’s 8th five-year plan.

It will have eight objectives with the view to increasing private sector jobs, improving socioeconomic inclusion and enhancing climate resilience.

“The WBG anticipates a robust engagement during the CPF period,” said the draft document prepared for the board’s approval.

The annual allocation from the International Development Association (IDA), the WB arm that provides concessional financing to poor nations, is expected to be within the $1.5-2 billion per annum range.

“Together with a current balance of about $8.24 billion to be disbursed under the existing projects, this offers an opportunity for series of transformational projects across key sectors.”

Some of the transformational projects earmarked include the development of an economic corridor centring on Jamuna River, restoration of the ecology of Dhaka rivers, Bay Terminal project, modernisation of public sector operation, and learning acceleration in secondary education.

At the same time, the International Finance Corporation, the WB arm that helps develop the private sector in developing countries, will strive to increase its investment programme to $900 million per annum, including mobilisation.

The Multilateral Investment Guarantee Agency, the WB arm that promotes investment in developing countries by offering political and economic risk insurance, will continue to support its existing portfolio of $1.1 billion in gross outstanding exposure across the energy and manufacturing sectors.

In collaboration with the IFC, MIGA will seek to support foreign direct investment into the country through its guarantee instruments as well as find opportunities to use its trade finance support instruments.

Fostering entries of new enterprises into markets and their growth will help the private sector become more diversified, the WB said.

Subsequently, it will help Bangladesh develop a diversified and competitive private sector by building an enabling environment that fosters new enterprise development and FDI.

It will support necessary reforms and utilise its instruments to facilitate market entries of new domestic and foreign firms through regulatory simplification.

The WB will also work towards fostering efficient and sustainable use of energy resources during the CPF.

“The recent energy crisis in Bangladesh underlines the vulnerability of the sector due to high dependency on fossil fuels,” it said.

Along with the new CPF, the WB board with authorise budget support of $500 million and a new project of $250 million.