B Mirror Report: The Government of Bangladesh and the International Development Association (IDA) of the World Bank Group signed an additional financing agreement yesterday that includes a grant of US$0.75 million and a loan of US$150 million for the execution of the Recovery and Advancement of Informal Sector Employment (RAISE) Project.

The RAISE Project has been under implementation since 2021 and is set to run until June 2026 with World Bank assistance. The implementation period for the newly approved additional financing will extend up to 31 December 2030.

The agreements were signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) under the Ministry of Finance, and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan, on behalf of their respective institutions. According to an ERD press release issued today, the project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance.

The project aims to deliver services that support income generation and employment opportunities for low-income urban and rural youth, particularly those affected by the Covid-19 pandemic.

The additional financing package includes a US$150 million concessional loan from IDA and a US$0.75 million grant provided by the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF).

The loan features an interest rate of 1.5 percent, a commitment charge of up to 0.50 percent on the undisbursed amount, and a repayment period of 25 years, including a grace period of five years.

Bangladesh’s biggest multilateral development partner is still the World Bank. This most recent funding highlights the solid collaboration between Bangladesh and the World Bank, which presently funds projects in a number of areas, including infrastructure development, institutional reform, economic and social development, and the growth of the energy sector.