The US development agency, USAID, has signed a grant deal with the interim government of Bangladesh.
Under the agreement, USAID will provide $202.25 million grants for three sectors namely good governance; social, human and economic opportunity; and resilience.
The deal was signed at the state guesthouse Padma on Sunday after a meeting of the visiting US interagency delegation of Finance adviser Dr Salehuddin Ahmed and foreign adviser Md Touhid Hossain.
Brent Neiman, assistant secretary for International Finance at the Department of the Treasury, is leading the delegation that includes Assistant Secretary of State Donald Lu and the USAID representatives.
The visit has been seen as a way to take forward the bilateral relations in a changed political situation. The Awami League government which was toppled on August 5 following students’ movement was at loggerheads with Washington.
Dr Muhammad Yunus has been leading the interim government since August 8.
The finance ministry said the US has been a “trusted development partner” of Bangladesh since 1972.
Under an umbrella agreement titled “economic technical and related assistance” which was signed in 1974, the US has contributed more than $8 billion till today in different sectors like democracy and governance, food security, health and education, and global climate change.
The US provides most of its development assistance through its aid agency USAID, United States Department of Agriculture and some other government and non-government organizations.
AKM Shahabuddin, additional secretary, economic relations division, Ministry of Finance, and Reed J. Aeschliman, Mission Director of USAID have signed the 6th amendment of the development objective grant agreement (DOAG) between the Bangladesh government and the USAID at the state guesthouse Padma.
On September 27, 2011, a new DOAG was signed between the government and the USAID for the period of 2021-2026. By implementing the DOAG, USAID is committed to contribute a total $954 million. So far, up to the fifth amendment it has provided $425 million, the finance ministry said.
“Under the sixth amendment USAID will provide a $202.25 million grant for three sectors namely good governance, social, human and economic opportunity and resilience.”
Washington, earlier, welcomed the formation of the interim government, and said the visiting delegation will discuss how the US can support Bangladesh’s economic growth, financial stability and development needs.