Apart from project support from its development partners, the Bangladesh government is now more interested in receiving budgetary support.
Keeping this strategy in mind, Finance Minister AHM Mustafa Kamal met World Bank's Vice-President of South Asian Region Martin Raiser on Sunday.
During his visit, Martin Raiser delivered some good news after the International Monetary Fund (IMF)'s loan support last week.
The World Bank will finance the "Beautiful Dhaka" project to make Dhaka a livable city by recovering the surrounding rivers from encroachments.
Kamal also said that the feasibility study has been completed in this regard.
“This project will be implemented in several parts. It has been discussed at the highest level of the government. Under this project, the rivers around Dhaka will be recovered from encroachment,” finance minister said after the meeting at the Secretariat.
Bangladesh was already scheduled to receive this in the form of $250 million in December from the Washington-based multilateral lender and is in discussions for another $400-450 million to support the government's green growth agenda.
A fresh $1 billion has been sought from the Washington-based multilateral lender to mitigate the effects of the Ukraine war: a cost-of-living crisis and a fast-widening current account deficit.
It was also informed that a loan proposal of $6.15 billion was currently in the pipeline for 2023-2025 period.
Referring to the $1 billion budget support Bangladesh received from 2019 to April 2022, the minister expressed his hope that another $500 million budget support will be available in the current fiscal year 2022-23.
He expected to receive a total of $500 million under the DPC of Green, Resilience, Inclusive Development (GRID), with $250 million each over the next two years.
Regarding the relationship between this multilateral development bank, the finance minister said: “Since 1972, the World Bank has given Bangladesh $37 billion in loans and grants. Of this, $26.7 billion have been disbursed and so far we have repaid $6.36 billion in interest and principal.”
The minister noted that the International Development Association's 20th replenishment cycle (IDA20) will be very helpful in revitalizing the economies of IDA countries.
"The global lender is also preparing a country partnership framework (CPF) for FY23-FY27. I've asked him to align the World Bank's CPF with Bangladesh's 8th Five Year Plan, Vision Plan and Delta Plan and other government master plans, sectoral plans and policies prioritizing Bangladesh's goal of becoming a developed country," Kamal added.
Bangladesh currently has the largest ongoing International Development Association (IDA) program totaling over $15.7 billion in 55 active projects.
Martin held a separate meeting with Economic Relations Department (ERD) Secretary Sharifa Khan before the meeting with the finance minister.
Martin Raiser arrived in Dhaka on Saturday for a three-day visit.
He is accompanied by Abdoulaye Seck, who will assume the position of the World Bank Country Director for Bangladesh and Bhutan from January 1, 2023.
Raiser said: “I am glad to be back in Bangladesh and to continue discussing with the government the important reforms that can help the country stay on the resilient and inclusive growth path and create opportunities for the people."
The World Bank was among the first development partners to support Bangladesh following its independence.
The International Development Association is an international financial institution which offers concessional loans and grants to the world's poorest developing countries. The IDA is a member of the World Bank Group.
The IDA20 is the largest financing package to date at $93 billion and covers the period from July 1, 2022 to June 30, 2025.
Unsurprisingly, Covid-19 upended the process as well as the objectives by necessitating funding for recovery efforts above all else.