DHAKA: The World Bank approved US$ 410 million to improve municipal governance and basic urban services in district towns and municipalities in Bangladesh and benefit 3.4 million people across the country.

The Municipal Governance and Service Project will provide financial support to 26 urban government bodies with high economic growth and job creation potential, located along growth corridors leading from Dhaka towards Chittagong, Rangpur, Sylhet, Mymensingh.

It will also cover three district towns in the southern part of the country.

Johannes Zutt, World Bank Country Director for Bangladesh said, “Bangladesh experienced some of the most rapid urbanization in South Asia. Yet, the cities offer inadequate infrastructure and low levels of urban services, particularly in district towns and municipalities.”

He also said: “In response to urban governance challenges, this project aims to make the urban local bodies become strong, responsive and inclusive local government institutions able to provide better urban services and undertake immediate response operations in times of major emergencies.”

Shenhua Wang, Senior Urban Specialist at the World Bank said, “The project incorporates a number of innovations to improve municipal governance and basic urban services.”

The credits from the International Development Association (IDA), the World Bank’s arm for the world’s poorest countries, have 40 years to maturity with a 10-year grace period and carry a service charge of 0.75 percent.

The country’s urban population rose from 15 percent in 1980 to 28 percent in 2010.  Municipalities and towns play key roles in supporting economic growth, jobs creation and poverty reduction.

BDST: 1241 HRS, JAN 16, 2014
Edited By: Shameem Reza, Newsroom Editor/RS