359 million US$ agreement signed with World Bank
Date: 12 September 2011 : An Agreement was signed on September 12, 2011 for US$ 359 million between the Government of Bangladesh and the International Development Agency (IDA) the soft window of the World Bank at the Economic Relations Division (ERD), Dhaka to financing the health, sector program. The credit will be utilized for implementing the ‘Health, Population and Nutrition Sector Development Program (HPNSDP)’ under the Ministry of Health and Family Welfare. Mr. M. Musharraf Hossain Bhuiyan) Secretary, ERD and Ms. Ellen Goldstein, Country Director of the World Bank Dhaka Office signed the agreement on behalf of their respective sides. Senior officials of the Government and the World Bank were present on the occasion.
The Ministry of Health and Family Welfare would implement the health, population and nutrition-sector wide approach program to provide quality health services to all citizens of Bangladesh focusing the needs of women, children, tile elderly and, the poor. The estimated cost of the program is US$ 3 billion out of which Development Partners (DPs) are expected to finance US$ 1.8 billion. International Development Association (IDA) will provide US$ 358.9 million as credit and the rest will be mobilized as grants and credits from other Development Partners. The program will be implemented over a period covering July 2011 to June 2016 for five years. The main aims of this program are:
a) to achieve the health and social sector related targets of Millennium Development Goals (MDGs) declared by the United Nations such as reducing infant and under-five year child mortality, improving maternal health, ensuring access to reproductive health service, combating HIV/ AIDS malaria & other communicable diseases and to reducing population growth.
b) to address the challenges of health, population and nutrition sectors; and
c) to modernize and increase the skills of health sector.
Elaborate strategies/activities will be undertaken to implement this sector wide program under the following two main components:
Improving Health Service Delivery; and
Strengthening Health Systems;
The credit is highly concessional in nature which carries a service charge of 0.75% on the withdrawn amount. The credit is repayable in 40 years with a grace period of 10 years with no commitment fee.