Bangladesh has signed a $300 million World Bank financing agreement to ensure the availability of fertiliser, particularly for small farmers, during planting seasons.
The financing agreement was signed on Monday between the government and the International Development Association (IDA), the concessional lending arm of the World Bank, under the Emergency Support for Food Security Project.
The financing amounts to SDR 219.2 million, equivalent to $300 million. The project will run from July 1, 2026 to June 30, 2027.
Economic Relations Division Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of their respective sides.
The Finance Division will implement the project in coordination with Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).
The project aims to contribute to food security by supporting the availability of eligible fertilisers, particularly for small farmers, during planting seasons.
The World Bank financing carries an interest rate of 1.5 percent a year on the withdrawn credit balance, with a maximum commitment fee of 0.5 percent a year on the undisbursed balance.
However, the World Bank has waived the commitment fee for Bangladesh for the current fiscal year, as it has done for several years.
The financing has a 25-year maturity, including a five-year grace period.
The latest financing comes as ensuring adequate fertiliser supplies remains critical for maintaining agricultural production and food security, particularly during peak planting seasons.