Bangladesh expects $5 billion from World Bank in 3 years 

The World Bank's support to Bangladesh through its International Development Association (IDA) window may reach $5 billion for the next three fiscal years, said sources at the economic relations division (ERD) of the Ministry of Finance.

"Total support from the IDA, including the SUF fund and the refugees sub-window, will exceed $5 billion," ERD Secretary Monowar Ahmed told The Business Standard. 

In addition to $5 billion from the IDA, the country is eligible to receive an additional amount from the $2 billion sub-window for refugees and host communities. Bangladesh is also willing to utilise the Scale-up Facility (SUF) consisting of funds that are underutilised by other countries.

The World Bank will provide $82 billion for the next three years to its lower-income and lower-middle-income member countries. 

In December last year, the IDA announced its new package-19, which is 3 percent more than IDA package-18.

Following a meeting with development partners at Stockholm in Sweden, the World Bank said it would provide the amount for the July 2020-June 2023 period. 

Bangladesh is preparing to implement at least 12 projects with the support of the World Bank, which will provide $3.02 billion for them. 

The bank will provide $170 million to implement the Dhaka Sanitation Improvement Project and $120 million for the Climate-Smart Agriculture and Water Management Project.

To implement the second phase of the Leveraging ICT Project, the World Bank will provide $300 million and $475 million for the Dhaka Public Transport Improvement Project.

However, Dr Zahid Hossain, former lead economist at the World Bank, said, "It cannot be said right now whether the allocation for Bangladesh in the IDA-19 package will increase or not. That is because country-wise allocation from the IDA depends on two things, one of which is per capita income. IDA allocation decreases if the per capita income increases. 

He said, "The per capita income of Bangladesh has increased rapidly in the last three years. According to the Bangladesh Bureau of Statistics, now the per capita income of Bangladesh is $1,909. This might cause a decrease in the allocation of the IDA fund, because its support mainly goes to poor countries."

"The World Bank also considers a country's performance to allocate the IDA fund. It considers the policy assessment to encourage performance. The IDA-19 allocation might increase if Bangladesh holds a strong position in the 'Country Policy and Institution Assessment (CPIA) Report'," said Dr Hossian.

"There are four categories in the CPIA report. These are – management of macro economy, structural policy, social policy, and good governance. Among these, good governance is most important to the World Bank. The allocation for Bangladesh might increase if the country registers a good position in the good governance index," he added. 

World Bank officials said Bangladesh received more than $4.5 billion from the 3-year IDA-18 package, which expires on 30 June 2020.

The World Bank said two-thirds of the world's poor — almost 500 million people — now live in countries supported by the IDA.

As part of the fight against extreme poverty, $82 billion will be spent to implement projects for the poorest people.

"The financing, which includes more than $53 billion for Africa, will help countries invest in the needs of their people, boost economic growth and bolster resilience to climate shocks and natural disasters" said the World Bank in a press release.

"Commitment by our partners is a strong sign of their support for the urgent mission to end extreme poverty and to promote shared prosperity in the poorest and most vulnerable countries," said World Bank Group President David Malpass.

The IDA will renew its support to facilitate growth and regional integration, including investments in quality infrastructure.

The world bank said, new funding will support projects that deliver life-changing results, including essential health, nutrition, and population services for up to 370 million people.

The funding will help to ensure better governance in up to 60 countries through improved statistical capacity.

It will help to generate an additional 10GW of renewable energy capacity and ensure access to broadband internet for 50 to 60 million people.