Bangladesh has signed a $270 million loan agreement with the World Bank’s International Development Association (IDA) to support a new recovery and resilience project.

The deal, signed on Sunday, aims to implement the Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG), according to state news agency BSS, Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Gayle Martin, Acting Country Director of the World Bank in Dhaka, signed the agreement on behalf of their respective sides.

The project will focus on rebuilding infrastructure damaged during the August 2024 floods and rehabilitating affected farmers. It also seeks to boost long-term resilience against climate-related disasters, with an emphasis on agriculture and economic development.

Implementation will span from July 2025 to December 2030, involving six government agencies, including the Water Development Board, Agricultural Extension Department, and Disaster Management Department.

The loan is repayable over 30 years, with a five-year grace period. It carries a 1.25% annual interest rate and a 0.75% service charge. While the commitment fee is up to 0.50%, the World Bank has been waiving this charge in recent years.

With over $43.5 billion committed since independence, the World Bank remains Bangladesh’s largest development partner. It is currently financing $13.1 billion across 47 active projects, covering sectors such as infrastructure, energy, and institutional reform.