Bangladesh Signs $404 Million World Bank Deal to Boost Health and Nutrition Sectors

Bangladesh has signed a USD 404 million financing agreement with the World Bank to upgrade its national healthcare, nutrition and population sectors over the next four years.

The agreement funded under the Health, Nutrition and Population Sector Development Program (HNPSDP) consists of a USD 379 million concessional loan from the International Development Association (IDA) and a USD 25 million grant from the Global Financing Facility (GFF).

Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky and World Bank Dhaka Division Director Jean Pesme signed the deal on behalf of their respective sides at the ERD office on Wednesday. The funds will support two major projects under the Ministry of Health and Family Welfare from July 1, 2025 to June 30, 2029.

The first initiative the "Health and Nutrition Services Improvement and System Strengthening Project" will be managed by the Directorate General of Health Services. It will focus on boosting healthcare accessibility, quality and systemic resilience with priority given to the Chattogram and Sylhet divisions.

The second initiative, the "Climate Responsive Reproductive Health and Population Services Improvement and System Strengthening Project for Results," will be executed by the Directorate General of Family Planning. This project aims to build climate-resilient reproductive health structures and improve institutional management across the country.

According to ERD sources, the IDA loan features a 30-year maturity period, which includes a five-year grace period. It carries a 1.25% annual interest rate and a 0.75% service charge on withdrawn amounts. While a 0.50% annual commitment fee applies to undisbursed balances, officials confirmed the World Bank has waived this fee for consecutive years including the current fiscal period.