The World Bank has agreed to provide Bangladesh with $202 million to help the country improve its food storage facilities.
The global lender will finance the project to help Bangladesh ensure cereal availability and improve storage management so that residents of disaster-prone areas have an easy access to food grains during and after disasters, said a press release.
The government and the World Bank signed an agreement on Monday in this regard.
Fatima Yasmin, secretary of the Economic Relations Division (ERD), and Mercy Miyang Tembon, World Bank's country director, signed the deal on behalf of their respective parties.
The money will be utilised in Bangladesh's "Food Storage Facilities" project, said the release.
Under the project, 8 silos – 6 for rice and 2 for wheat – with a capacity of over 5.35 lakh tonnes will be built in order to increase food storage at the government level.
Moreover, 5 lakh household silos will be constructed to store food grains and domestic animals.
The completion of the project will increase scope for emergency relief availability after floods and cyclones by ensuring storage of safe food.
The food directorate project, which began in January 2014, was scheduled to be completed by June 2022. But the tenure was extended to October 2023 as the project required an additional fund.
Initially, the total project cost was set at Tk1,920 crore, with the World Bank providing Tk1,917 crore. After the Monday's deal signing, Tk1,712 crore more from the global lender has been added to the fund.
The fresh loan will have to be repaid in 30 years, with a 5-year grace period. Bangladesh will have to pay the interest at an annual rate of 1.25% and service charge at 0.75%.