Govt signs $50m credit deal with IDA
Friday, 01 August 2008

Desk Report

The government signed a $50 million credit agreement on Thursday with the International Development Association, World Bank's low-cost lending arm, to rehabilitate families affected by last year's Cyclone Sidr.

The funds will be disbursed under the Social Investment Program Project (SIPP), of the government's Social Development Foundation, to support rural infrastructure development and income generating activities for the poorest.

The financing will be used to expand SIPP activities in the Sidr-affected southwest coastal region, the Economic Relations Division said in a statement.

The project is expected to cover 14 of the worst affected upazilas and assist almost one million people, by helping restore assets and livelihoods.

ERD additional secretary Mejbahuddin Ahmed and WB country director Xian Zhu signed the agreement at the ERD premises Thursday.

The 40-year maturity credit carries a service charge of 0.75 percent including a 10-year grace period.

WB pledged $250 million in short and medium term support, after Cyclone Sidr hit in November 2007, to recover damages and strengthen disaster systems.

The last financial year saw $100 million of the amount pledged disbursed as budgetary support.

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