World Bank Grants $850M to Bangladesh for Bay Terminal, SSPIRIT Social Protection Project 

Bangladesh and the World Bank have signed two agreements worth $850 million to reform the country’s trade capacity and upgrade its social protection system. The funding is from the World Bank’s International Development Association (IDA) and it marks an extension of a long standing collaboration that has covered more than $45 billion of support since independence. The two agreements were signed by Shahriar Siddiky, Economic Relations Division Secretary and World Bank Interim Country Director Dr. Gayle Martin in front of Finance Adviser Dr. Salehuddin Ahmed and Martin Raiser, Vice President of the World Bank for South Asia.

Out of the total amount, $650 million will go to the Bay Terminal Marine Infrastructure Development Project. The project will have a tremendous impact on Bangladesh’s export competitiveness by increasing the capacity and efficiency of ports, reducing transportation costs and lowering turnaround time for ships safely, saving the economy close to $1 million a day.

The project will construct key infrastructure such as a 6 kilometer climate resilient breakwater and upgraded access channels. Aimed at accommodating larger vessels, the Bay Terminal is expected to cater to approximately 36 percent of the country’s container traffic and serve more than one million individuals. Interestingly, the project will promote women owned businesses participation and ensure women’s employment in port activities.

The other $200 million will help to Strengthening the Social Protection for Improved Resilience, Inclusion, and Targeting (SSPIRIT) project. It will cover 4.5 million people such as young people, women,  disabled people and climate exposed workers via cash transfers and livelihood services.

SSPIRIT will establish a national Dynamic Social Registry to provide accurate targeting, while supporting 2.5 million people to increase their income opportunities through skills training, entrepreneurship, micro credit and mentorship. This strategy will open up channels for beneficiaries to transition out of social protection programs into employment helping to realize Bangladesh’s vision of a resilient, inclusive economy.