The Islamic Development Bank (IsDB) will provide Bangladesh with $56 million to finance a project, aimed at improving the quality of lives and livelihoods of people of 10 selected priority towns through safer, adequate, equitable, and sustainable sanitation and hygiene facilities with a special focus on poor women and children.
The government and the IsDB signed the loan agreement, "Inclusive Sanitation and Hygiene Project in 10 (Ten) Priority Towns in Bangladesh," on Sunday, says a press release issued by the Economic Relations Division of the finance ministry.
The priority towns are Narsingdi, Shariatpur, Cumilla, Lakshmipur, Jamalpur, Notore, Pabna, Sirajgani, Bagerhat, and Patuakhali.
Of the total financing, $36.4 million is loan and $19.6 million is grant, says the press release, adding the loan shall bear interest at the rate of approximately 3.20% while the total financing shall have a maturity of 20 years including a grace period of 5 years.
Bangladesh is one of the founding members of the IsDB. The bank has been providing financial assistance since its inception in the form of grant, project loan, trade financing, private sector financing, export credit guarantee, etc.
As of now, the development partner has approved approximately $22.51 billion in financial assistance to Bangladesh.
IsDB's project financing in the public sector of Bangladesh mainly focuses on sanitation, water sector, education, power, rural infrastructure, poverty alleviation and agriculture.