World Bank approves $500m to Bangladesh for road connectivity with India

World Bank Country Director for Bangladesh and Bhutan Mercy Tembon said, "This project will unlock the region's potential by stimulating the economy of districts, linking farms to markets, connecting Dhaka with the western region as well as with neighbouring countries, thus enhancing trade, transit and logistics along the corridor."

It will support the Bangladesh government's plan of developing a 260 km economic corridor in the western part and benefit over 20 million people.

The Western Economic Corridor and Regional Enhancement (WeCARE) Phase I project is the first of a multi-phased $1.4 billion World Bank programme to upgrade the existing 110 km two-lane highway, Bhomra-Satkhira-Navaron and Jashore-Jhenaidah, to a safer and climate-resilient four-lane highway in western Bangladesh, said a World Bank press release on Wednesday.

The World Bank is among the first development partners to support Bangladesh following its independence. Bangladesh currently has one of the largest IDA programmes totalling over $13 billion.

Since independence, the World Bank has committed more than $31 billion in grants, interest-free, and concessional credits to the country.

The first phase of the programme will upgrade 48 km of the N7 highway between Jashore and Jhenaidah and improve about 600 km connecting rural roads and 32 rural markets/growth centres to stimulate the local economy.

The COVID-19 pandemic has hit the poorest hard with the loss of jobs and income. To help them recover from the shock, the project will support immediate social protection and livelihoods to the vulnerable rural people by engaging them in labour-intensive civil works.

In Khulna Division, where about 57 per cent of the population's income is generated from agricultural production, the project will build new markets and improve storage facilities along the corridor that will help farmers reduce waste, increase sales and earn more, the world Bank officials mentioned as an example.

The credit from the World Bank's International Development Association (IDA), which provides concessional financing, has a 34-year term, including a four-year grace period. With this financing, the World Bank's total commitment in the current financial year (FY 19-20) stands at $2.27 billion.

The western region of Bangladesh is endowed with many agricultural and natural produce and holds great potential of becoming a gateway for regional and international trade, WB Country Director Mercy said. (IANS)

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