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Bangladesh secures $290m World Bank loan to combat air pollution
BY Insider Desk
May 17, 2025

Bangladesh has concluded negotiations with the World Bank for a $290 million loan to tackle severe air pollution through a series of green transport and monitoring initiatives.
Officials from the Economic Relations Division (ERD) confirmed that the loan, expected to be approved next month, will fund the purchase of 100 electric buses, the establishment of 12 vehicle inspection centres (VICs), and the deployment of 20 mobile emission detectors in Dhaka and several district towns.
The Bangladesh Clean Air Project will be implemented by three agencies: the Department of Environment (DoE), Dhaka Transport Coordination Authority (DTCA), and Bangladesh Road Transport Authority (BRTA).
The DTCA will operate the electric buses in Dhaka on a pilot basis. “If successful, the initiative will be expanded,” said an ERD official. The DTCA also prepares operational guidelines for private sector participation in electric bus services.
For the first time, BRTA will introduce five mobile VICs at key locations in the capital and seven more in district towns. Twenty mobile emission monitoring machines will also be deployed to assess vehicle pollution.
A DoE official stated that Dhaka, consistently ranking as one of the world’s most polluted cities, urgently needs these interventions. “We aim to strengthen air quality management and reduce emissions,” he said.
The project’s comprehensive strategy is part of a wider effort to curb toxic emissions from the city’s vast fleet of motorised vehicles and improve public health.
The loan agreement is expected to be signed following World Bank board approval.
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