World Bank to provide $300m to strengthen Bangladesh’s food security

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The World Bank will provide Bangladesh with $300 million to support food security, following a financing agreement signed between the government and the World Bank’s International Development Association (IDA) on Monday.

The funding, equivalent to SDR 219.2 million, will be used for the Emergency Support for Food Security Project, which will run from July 1, 2026 to June 30, 2027.

Economic Relations Division Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of the two sides.

The Finance Division will implement the project in coordination with Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).

According to the ERD, the project aims to ensure the availability of eligible fertilisers, particularly for smallholder farmers, during planting seasons and thereby support food security.

The loan carries an annual interest rate of 1.5% on the withdrawn balance and a commitment fee of up to 0.50% on the undisbursed amount. Bangladesh, however, has received a waiver of the commitment fee from the World Bank for several years.

The loan will have a 25-year maturity, including a five-year grace period. The World Bank remains Bangladesh’s largest multilateral development partner, providing financing across areas including economic and social development, institutional reform, infrastructure and energy.