The International Development Association (IDA), a concern of the World Bank, will provide USD $ 120 million for development of 'climate smart agriculture and water management project.’

Bangladesh and the World Bank on Tuesday signed a loan agreement in this regard held at the Economic Relations Division (ERD), a wing of the Ministry of Finance.

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Fatima Yasmin, Secretary, ERD Dandan Chen, acting country director of the World Bank, Dhaka Office  signed the agreement on behalf of their respective sides.

The project will be implemented jointly by Bangladesh Water Development Board (BWDB) under Ministry of Water Resources, Department of Agricultural Extension (DAE) under Ministry of Agriculture and Directorate of Fisheries under the Ministry of Fisheries and Livestock.

The project is likely to end in June, 2026.

Of the total loan amount, $100 million will be provided to BWDB and $ 10 million to the DAE and the DoF each.

The WB will provide the loan from IDA19 Scale-Up Window (SUW).The financing will have a maturity of 35 years, including a 5-year grace period, said a handout.

The purpose of the loan is to rehabilitate and modernize  Flood Control Drainage (FCD) and Flood Control Drainage Irrigation (FCDI) infrastructure for climate-resilient water resources management.

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Moreover, the project will enhance agricultural productivity and around 50 percent irrigation water will be saved in the crop field through at least 12 climate smart technologies in the project area and increase 20 percent of fish production and productivity by introducing climate smart aquaculture technology.

The WB has been providing development assistance to Bangladesh in many important sectors including health & education, energy sector, inland connectivity & logistics, eegional & global integration, urbanization and adaptive delta management sector since after having membership in 1972.