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IsDB to provide $56m for improving sanitation in 10 towns

  • Staff Correspondent
  • 21 February, 2022 12:00 AM
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IsDB to provide $56m for improving sanitation in 10 towns

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The Islamic Development Bank (IsDB) will provide $56 million financial assistance to Bangladesh for implementing a project to improve sanitation and hygiene facilities in 10 priority district towns.

A loan agreement was signed on Sunday between the government of Bangladesh and the IsDB to this end.

Under the loan agreement, IsDB will provide $36.4 million loan and $19.6 million grants with Economic Relations Division (ERD) Secretary Fatima Yasmin penning the deal on behalf of GoB, says a release.

The funds will be utilised in ‘Inclusive Sanitation and Hygiene Project in 10 (Ten) Priority Towns in Bangladesh” project, aiming to improve lives and livelihoods of some 1.4 million citizens of 10 selected priority towns.

The districts are Narsingdi, Shariatpur, Cumilla, Lakshmipur, Jamalpur, Notore, Pabna, Sirajgani, Bagerhat and Patuakhali.

The scheme eyes to ensure safer adequate, equitable, sustainable sanitation, hygiene, facilities and services with a special focus on the urban poor women and children of the district headquarters.

The $36.4 million loan will bear an interest rate of approximately 3.20 percent. The total financing will have a maturity period of 20 years, including a grace period of 5 years. The grant element of the total financing is 45.76 percent.

IsDB is one of the leading and trusted development partners. The purpose of the bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic Shari'ah.

Bangladesh is one of the founding members of the IsDB. The IsDB has been providing financial assistance since its inception in the form of grant, project loan, trade financing, private sector financing, export credit guarantee. As of now, IsDB has approved approximately $22.51 billion.

IsDB's project financing in the public sector of Bangladesh mainly focuses on sanitation, water sector, education, power, rural infrastructure, poverty alleviation and agriculture.