On 23 April, Bangladesh and the World Bank signed two financing agreements totaling US$850 million to help the country develop the Bay Terminal deep-sea port and modernize the national social protection system to accelerate job creation and inclusive growth.
“To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labor market every year,” said Gayle Martin, World Bank Interim Country Director for Bangladesh. “This financing package will be a game changer for job creation by enhancing trade and export competitiveness and helping the most vulnerable graduates from social protection programs and get ready for the job market.”
The Bay Terminal Marine Infrastructure Development Project (US$650 million) will enhance Bangladesh’s export competitiveness by increasing the port’s capacity and efficiency and reducing transportation costs and time.
It is also expected to support essential infrastructure for port development, including a 6 km climate-resilient breakwater and access channels. By accommodating larger vessels, the deep-sea port will substantially decrease vessel turnaround time, potentially saving the economy about US$1 million daily.
The Bay Terminal will handle about 36% of Bangladesh’s container volumes, directly benefiting over one million people by improving access to sustainable transport services and enhancing connectivity to regional and international markets.
The Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting (SSPIRIT) project (US$200 million) will provide cash transfers and livelihood services for 4.5 million people, focusing on youth, persons with disabilities, women, and workers in climate-vulnerable regions. The project will modernize delivery systems, ensuring support reaches those most in need and enabling effective responses to potential climate or economic shocks.
Additionally, it is expected to establish a national Dynamic Social Registry for accurate targeting of beneficiaries and for identifying individuals eligible for further support, such as livelihoods and employment services. By combining cash assistance with skills development and entrepreneurship, micro-credit, and mentorship, the project will improve job readiness and income-earning capacities of about 2.5 million people. Such a graduation strategy that allows poor households—with a focus on youth and women—to ‘move up the ladder’ is vital for Bangladesh’s labor market.
The financing is from the World Bank’s International Development Association (IDA).
