Thursday, May 24, 2018

Bangladesh signs $110 million deal with World Bank to fund project for rural microenterprises

  • Staff Correspondent, bdnews24.com
    Published: 2018-05-16 22:45:29 BdST

bdnews24

The World Bank and Palli Karma-Sahayak Foundation or PKSF have signed a $110 million loan agreement to fund a project aiming at poverty alleviation by helping microenterprises adopt cleaner technologies.

PKSF, a government non-profit company, will give small rural entrepreneurs up to Tk 1 million loans under the $130 million or around Tk 10.8 billion Sustainable Enterprise Project.

The World Bank is providing Tk 9.13 billion for the project while PKSF will fund Tk 1.66 billion.

World Bank Country Director Qimiao Fan and Economic Relations Secretary Kazi Shofiqul Azam signed the deal at the National Economic Council on Wednesday.

The World Bank is providing the credit at 0.75 percent service charge from its concessional lending arm International Development Association or IDA with a term of 38 years, including a six-year grace period.

SEP Director Fazlul Quader said at the signing ceremony that PKSF formed 1.12 million business clusters with poor families in the rural areas to achieve sustainable development.

“PKSF wants these families to get rid of poverty by becoming small entrepreneurs,” he added.

He also said they aim to start the project in June and implement it for five years.

The World Bank said in a statement the project would help about 20,000 microenterprises adopt environmentally friendly practices in the manufacturing and agribusiness sectors.

“Around the globe, we have seen that investing in clean, green, and climate resilient technologies helps countries reduce poverty and achieve sustainable growth,” it quoted Fan as saying.

 “The Project will help Bangladesh create quality jobs, improve competitiveness, and boost growth while improving environmental sustainability and resilience to climate change,” he added.