The Government of Bangladesh has signed a loan and grant agreement worth $404 million (40 crore 40 lakh USD) with the World Bank to support the country's health, nutrition, and population sector development program.

The agreement was signed on Wednesday (June 10) at the Economic Relations Division (ERD) in the capital's Sher-e-Bangla Nagar.

ERD Secretary Md. Shahriar Kader Siddiki signed on behalf of Bangladesh, while World Bank Dhaka Office Division Director Jean Pesme signed on behalf of the global lending agency.

The information was confirmed in a press release issued by Abdul Kader, Deputy Secretary of the World Bank-5 Branch under the Economic Relations Division of the Ministry of Finance.

According to the press release, the World Bank will provide 284.70 million SDR—equivalent to approximately $379 million USD—as a loan under this agreement. In addition, a grant of $25 million USD will be provided from the 'Global Financing Facility.'

The funds will be utilized to finance two separate projects under the Ministry of Health and Family Welfare, scheduled to run from July 1, 2025, to June 30, 2029.

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

Its objective is to ensure the quality, accessibility, and sustainability of health and nutrition services nationwide, with a special focus on the Chattogram and Sylhet divisions.

The second project, focusing on climate-resilient reproductive health and population services, will be implemented by the Directorate General of Family Planning (DGFP).

This project aims to safeguard reproductive health while addressing the vulnerabilities brought on by climate change.

The World Bank loan has a repayment tenure of 30 years, including a five-year grace period. An annual interest rate of 1.25% will apply to the disbursed amount, along with a service charge of 0.75%.

Additionally, a commitment fee of 0.50% has been set on undisbursed funds; however, the World Bank has waived this commitment fee for the current fiscal year and the extended period.