Read More: $2 Billion World Bank loan for Bangladesh
Bloomberg Green reported on August 24, 2020, that Bangladesh is expecting the World Bank to approve USD 2 billion in loans to support its ambitious climate adaptation plan, with the first installment planned for the beginning of next year. The funds would be used to implement the Delta Plan 100, which aims to minimize damages from flood events in the low-lying country. It includes water and land management as well as economic development projects, creating jobs while also protecting existing livelihoods.
Bangladesh was hit hard by the current COVID-19 pandemic and has already had to increase its borrowing to fund response measures. While the pandemic currently puts extraordinary stress on the country’s economy and endangers the livelihood of many citizens, Bangladesh is also facing ongoing climate stress caused by extreme weather events and flooding. Investments in better water management will therefore be crucial if the country is to prevent the permanent displacement of people and the loss of agricultural land. Recognizing these immense challenges, the Bangladesh government approved the Delta Plan in 2018. The plan’s first phase requires about $38 billion in investments by 2030 for projects such as land reclamation and the construction of embankments and safe navigation channels. To meet these financial demands, the country will have to invest about 2.5% of its gross domestic product by 2030.