Bangladesh and the World Bank have entered into two big financing agreements. The agreements involve a total amount of $900 million. The accords will help Bangladesh achieve climate resilience and environmental sustainability. Through policy changes and urban infrastructure improvements, the nation hopes to accomplish that.

Green and Climate Resilient Development

The first agreement involves a $500 million loan under the Second Bangladesh Green and Climate Resilient Development Credit. The allocated funds will aid policies that help Bangladesh transition into a more sustainable, climate resilient economy.

The finacing provided by the World Bank will centre on developing public planning, financing, and implementation of green and climate-friendly projects. This includes the reduction of air pollution, improvement of water and sanitation services, and enhancement of the efficiency of the Bangladesh Delta Plan 2100.

Also read: ADB Signs $24.3 Million Financing Deal for Solar Power Plant in Bangladesh

Making the environment cleaner and more sustainable is the ultimate objective. Public procurement, increasing access to carbon markets, and sustainable production methods will be the main areas of reform. This will lessen the impact of climate change.

Resilient Urban Infrastructure

The second agreement was a financing worth $400 million under the Resilient Urban and Territorial Development Project that aimed at enhancing the urban infrastructure in Bangladesh. This would target seven city clusters along the economic corridor that stretches from Cox’s Bazar to Panchagarh.

This will include the development of footpaths, bus terminals, markets, parks, and public toilets. The project will also build over 880 kilometers of urban roads, enhancing mobility and connectivity

In addition, the project will make sub-grants to municipalities to invest in  sustainable infrastructure. The infrastructure can be incorporated into the design of new facilities, including features of green building such as a rainwater harvesting system and considering gender.

Over 17 million people stand to benefit from this project, which will focus on climate resilient and gender-responsive infrastructure.

Continued Support for Bangladesh

For years the World Bank has been a reliable ally in Bangladesh’s progress. Since the nation’s independece, the World Bank has committed over $45 billion. The organisation has supported important development objectives by doing this through grants, loans, and credits.

The World Bank’s continued dedication to assisting Bangladesh in achieving environmental sustainability and enhancing urban resilience is demonstrated by these new finance agreements.

The Asian Development Bank (ADB) has granted approval to provide a senior secured loan up to the worth of $70 million towards the Vastu Housing Finance Corporation Limited, popularly known as Vastu. This collaboration intends to enhance the availability of housing loans to the unprivileged groups across India. The amounts target economically weaker sections, low-income group’s particularly women, and First Home Buy-in customers. It helps bridge the housing void that exists in India

India has a massive housing shortage, requiring 45 million homes for the EWS and 50 million homes for the LIG population. High mortgage rates and short credit histories render it difficult for these families to access credit and ultimately secure homeownership. To solve that, the ADB-Vastu partnership will provide housing finance for currently underserved borrowers in the rural and semi-urban zones.

Suzanne Gaboury, Director General of ADB’s Private Sector Operations Department, said, “ADB aims to address the critical housing shortage in India while promoting environmentally friendly housing that enhances climate resilience for homeowners by focusing on lower-income households and sustainable housing.”

She added, “This partnership with Vastu illustrates ADB’s commitment to supporting financial inclusion and sustainable development in India, in alignment with the country’s national financial inclusion strategy.”

Also read: ADB and Australian Partners Invest $10 Million to Promote Sustainable Transport in Indonesia

Increasing affordable housing access

Vastu Housing Finance is a technologically-enabled affordable housing finance company that commands market presence in the semi-urban and rural markets. It lends to self-employed people and underprivileged sections of society, which consist of a growing middle class as well as low-income families.

Focus on Sustainability and Inclusion

This partnership also focuses on sustainable housing, increasing climate resilience and supporting broader sustainable development goals in India. This initiative aims at empowering the marginalized communities and increasing their financial access through Vastu and ADB.