Bangladesh, WB sign loan agreement to buy vaccines
Published: 12:57 PM, 13 April 2021
Bangladesh has signed a loan agreement of $500 million (Tk 4,330 crore) with the World Bank (WB) to buy coronavirus vaccine.
The agreement was signed by Fatima Yasmin, Secretary of Economic Relations Division (ERD) on behalf of the Bangladesh Government and Mercy Tembon, Country Director of Bangladesh Office on behalf of the World Bank.
The WB has agreed to provide $500 million (Tk 4,330 crore) additional loan assistance under the “Covid-19 Emergency Response and Pandemic Preparedness” project.
This information was given in a press release sent from ERD on Monday.
Under the project, the agency provided loan assistance of $100 million on April 10, 2020. Besides, a loan of $100 million also obtained from Asian Infrastructure Investment Bank (AIIB) under this project. Following this, the WB has provided additional loans under the ongoing project to buy vaccines. The project will be implemented by December 2023.
The main purpose of the project is to buy and supply vaccines. Besides, to vaccinate 31% of the total population of the country by purchasing advanced vaccines from COVAX, to increase the capacity of the Directorate General of Drug Administration (DGDA) by setting up vaccine testing labs and to ensure the quality of the vaccine by keeping the cold chain system intact in vaccine storage and distribution.
In the case of this additional funding from the World Bank, the regular term of funding from the International Development Association (IDA), a subsidiary of the World Bank, will apply.
The loan is repayable for 30 years with a grace period of 5 years and the interest rate will be 1.25 percent and the service charge will be 0.65 percent. The commitment charge on the unpaid amount will be 0.50 percent.