A financing agreement was signed today between the Government of Bangladesh and the International Development Association (IDA) of the World Bank Group for an amount of Special Drawing Rights (SDR) 219,200,000.00 equivalent to $300.00 million to implement the "Emergency Support for Food Security Project".

The implementation period of the project is from 1st July 2026 to 30 June 2027.

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), Ministry of Finance and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan signed the financing agreements on behalf of their respective sides.

The project will be implemented by the Finance Division (FD) in coordination with Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).

The objective of the project is to contribute to food security by supporting the availability of eligible fertilizers, in particular for smallholder farmers, during the planting seasons, said an ERD press release.

The loan carries an interest rate of 1.5% per annum on the Withdrawn Credit Balance, a maximum commitment fee of up to 0.50% per annum on the Unwithdrawn Financing Balance.

However, the World Bank has been waiving the commitment fee for Bangladesh for many years, including the current fiscal year. The maturity period of the loan is 25 (twenty-five) years, including a five-year grace period.

The World Bank is the largest multilateral development partner of Bangladesh. This financing reflects the deep cooperation between Bangladesh and the World Bank.

Currently, the World Bank financing is covering a wide range of sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector advancement.