The World Bank is providing a total of $1.1 billion in emergency assistance to Bangladesh to ensure food security, maintain fertilizer supply, protect livelihoods and employment, and continue essential services.
The financing has been approved under two separate projects to address the impact of rising fertilizer and fuel prices and supply shortages in the global market, said a press release on Friday (June 26).
Jean Pesme, division director for Bangladesh and Bhutan at the World Bank, said that the prices of food, fertilizer and fuel have increased due to the conflict in the Middle East. At the same time, the government's revenue expenditure constraints have put pressure on the Bangladesh economy. Small farmers and the poor and vulnerable population are being hit the hardest.
He also said that this financing will help ensure the supply of fertilizer needed for rice production, protect families and livelihoods, and continue essential government services.
Of this, the 'Emergency Support for Food Security' project will be implemented at a cost of $300 million. Under this project, the import of essential fertilizers for the 2026 Aman and 2026-27 Boro seasons will be financed.
The World Bank will finance the import of 600,000 tonnes of important fertilizers; almost half of which is urea fertilizer. This will help small farmers continue to produce rice on about 1.4 million hectares of land.
World Bank Lead Economist and Project Task Team Leader Souleymane Coulibaly said that about 90% of Bangladesh's total rice production comes from the Aman and Boro seasons. Almost half of the country's people are involved in agriculture. As a result, if there is a disruption in the supply of fertilizers, food security will be at risk, as well as poverty and unemployment may increase.
In addition, assistance will be provided for emergency expenses during the crisis through the 'Contingent Emergency Response' project at a cost of $713 million. The fund will provide cash assistance and livelihood restoration to affected households and micro, small and medium enterprises. It will also be used to maintain employment and stabilize people's incomes.
The project will also provide funding to maintain energy and power supply, as well as to continue essential services such as food, medicine, medical equipment and safe water. The World Bank said that the project will be disbursed by June 30, 2026.
Leslie Jeanne Yu Cordero, lead disaster risk management specialist at the World Bank and task team leader of the project, said that under the World Bank's special mechanism for crisis response and rapid response, Bangladesh will receive money quickly when needed. Unused funds from existing projects will be redeployed and spent on the most needed sectors.