Bangladesh looks set to receive an additional $2 billion in aid funding review 2018. The unused funds will be diverted from other member countries. This was confirmed by officials on Friday. Bangladesh had requested the funding previously.
The new, revised IDA18 aid package, it has been confirmed that Bangladesh is set to receive almost all of the originally planned $4.4 billion portfolio. This has been allotted by the World Bank for three years, running up to the financial year 2019-2020.
With the World Bank’s International Development Association (IDA18) aid package mid-term meeting review being held in Livingstone, Zambia last week, the decision was made to divert funds from countries that are failing to spend their funding to other member countries with a higher demand.
Ms. Mahmuda Begum headed the Bangladesh delegation at the International Development Association 2018 in Livingstone, Zambia.
“Bangladesh has already taken almost all the funds from World Bank’s IDA-18 package on the halfway. So, we sought $4 billion more assistance to meet our demands,” stated Mahmuda Begum, additional secretary of Economic Relations Division (ERD).
“However, the World Bank has been able to divert about $2 billion in funds from some war-torn member countries. We are hopeful of getting almost all the diverted funds, as Bangladesh is the highest performer among the World Bank member countries.”
The major changes to the IDA18 aid package plan were primarily made because certain member countries were failing to spend their aid packages. War-torn countries, including Yemen and Syria, still locked in civil wars, aren’t capable of spending the aid packages.
This has meant the World Bank has seen fit to redirect the underutilised funding to other member countries in need of it, specifically Bangladesh, who requested the funding, and require the aid deals in greater volume.
“We have already signed aid deals worth nearly $4.4 billion with the World Bank in some one and a half years period. The IDA-18 package still has another one and a half year deadline. So, we need more assistance from the World Bank for the remaining period to help implement our projects in the pipeline,” Begum added.
The World Bank’s existing IDA18 aid package allotted around $72 billion in funding for member countries, generally to be delivered between the financial years ’17-’18 and ’19-’20.
In the October just gone, officials stated that the World Bank signed off on aid packages amounting to nearly a billion dollars with Bangladesh. This was signed off against a range of different large development works and projects in the country.
Bangladesh is one of the single largest concessional loan receivers from the World Bank within the IDA members. Last year’s IDA package set aside around $4 billion in funding for Bangladesh, out of its $52.1 billion total.
The World Bank IDA18 package review meeting also guaranteed Bangladesh a $500 million grant in funding for refugee Rohingya Muslims, from refugee funding.