A $300 million loan financing agreement was signed between Bangladesh and the International Development Association (IDA) of the World Bank Group at the Economic Relations Division (ERD), yesterday.
The loan will be provided to implement the "Local Government Covid-19 Response and Recovery Project (LGCRRP)," said a press release.
The project will be implemented by the Local Government Engineering Department under the Local Government Division.
The implementation period of this project is from January 2022 to December 2025.
Sharifa Khan, ERD secretary, and Mercy Miyang Tembon, country director of the World Bank, inked the agreement on behalf of their respective sides.
The loan is repayable in 30 years with a grace period of five years.
The service charge is 0.75% and the interest charge is 1.25% per annum on the loan withdrawal balance of the SDR-denominated loan.
The commitment fee is up to 0.50%, but the World Bank has been waiving commitment fees for a long time.
The main objective of the project is to strengthen the capacity of urban-centric local government institutions to cope with the Covid-1 9 pandemic, expand the reach of health services, and ensure access to essential civic amenities (water supply, waste management, sanitation and drainage).
Also, through the project, IT-based revenue management will be developed, aiming to increase the vaccine distribution programme and the self generated income of city corporations and municipalities.