Published: 11:59 AM, 12 June 2026
Bangladesh signs $404m WB financing deal for health, nutrition
Bangladesh signed a financing agreement worth US$404 million with the World Bank (WB) to support the development of the country's health, nutrition and population sector on Wednesday. The agreement was signed under the Health, Nutrition and Population Sector Development Program (HNPSDP), financed by the World Bank Group's International Development Association (IDA).
Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky signed the loan and grant agreement on behalf of the Government of Bangladesh, while Jean Pesme, Division Director of the World Bank Office in Dhaka, signed on behalf of the World Bank at a function at ERD in the city, according to a press release. Under the agreement, the World Bank will provide SDR 284.70 million (equivalent to US$379 million) in concessional loan assistance.In addition, the Global Financing Facility (GFF) will provide a US$25 million grant, bringing the total financing package to US$404 million.
The financing will support two projects under the Ministry of Health and Family Welfare during the period from July 1, 2025, to June 30, 2029. The first project, "Health and Nutrition Services Improvement and System Strengthening Project," will be implemented by the Directorate General of Health Services under the Health Services Division.
The project aims to strengthen health system capacity and resilience while improving the quality, accessibility and effectiveness of health and nutrition services nationwide, with particular focus on the Chattogram and Sylhet divisions.
The second project, "Climate Responsive Reproductive Health and Population Services Improvement and System Strengthening Project for Results," will be implemented by the Directorate General of Family Planning under the Health Education and Family Welfare Division.
The project seeks to enhance the quality, efficiency and equity of reproductive health and population services by strengthening climate-resilient systems and institutional management frameworks. According to the agreement, the IDA loan will be repayable over 30 years, including a five-year grace period.
The loan will carry a 0.75 percent annual service charge on the withdrawn amount and an annual interest rate of 1.25 percent. A 0.50 percent annual commitment fee will also apply to undisbursed loan
balances. However, officials noted that although the provision for a commitment fee exists, the World Bank has refrained from collecting the fee for many years, including the current fiscal year.
The financing is expected to support Bangladesh's efforts to strengthen healthcare delivery, improve nutrition outcomes, expand reproductive health
services and enhance the resilience of the health system against climate-related challenges.
