Bangladesh Secures $850M World Bank Deal to Boost Bay Terminal and Social Protection

The funding will support the construction of the Bay Terminal deep sea port and the modernization of the country's national social protection systems.

In a landmark development aimed at accelerating inclusive growth, job creation, and climate resilience, the Government of Bangladesh today signed two major financing agreements with the World Bank totaling $850 million. The funding will support the construction of the Bay Terminal deep sea port and the modernization of the country's national social protection systems.

The agreements were signed in Dhaka by Mr. Shahriar Siddiky, Secretary of the Economic Relations Division, Government of Bangladesh, and Dr. Gayle Martin, Interim Country Director for Bangladesh at the World Bank. Also present were Dr. Salehuddin Ahmed, Honorable Finance Adviser to the Government of Bangladesh, and Martin Raiser, World Bank Vice President for South Asia.

Transforming Bangladesh’s Maritime Gateway

The bulk of the financing—$650 million—will fund the Bay Terminal Marine Infrastructure Development Project, a critical initiative to enhance Bangladesh’s trade and export competitiveness. The new deep sea port will dramatically improve the operational capacity and efficiency of the country’s maritime logistics.

The Bay Terminal, located along the coast of the Bay of Bengal, is set to handle approximately 36 percent of Bangladesh’s container volumes, easing congestion at the overburdened Chattogram Port. The terminal will directly benefit more than one million people by expanding access to sustainable transport services and improving connectivity to regional and global markets.

The infrastructure works will include the development of a 6-kilometer climate-resilient breakwater, along with modern navigation and access channels that will allow the docking of larger container ships. These upgrades are expected to reduce vessel turnaround time significantly, potentially saving the Bangladeshi economy up to $1 million per day.

Beyond the economic benefits, the project includes a focus on social inclusion and gender equity. Specific measures will promote women’s participation in port operations and encourage trade opportunities for women-owned businesses.

A Modernized Approach to Social Protection

The remaining $200 million will fund the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting (SSPIRIT) project. With a goal to assist over 4.5 million people, the initiative focuses on vulnerable groups including youth, persons with disabilities, women, and climate-affected workers.

The SSPIRIT project is set to overhaul Bangladesh’s social protection delivery systems by creating a Dynamic Social Registry (DSR). This national registry will ensure more accurate targeting of beneficiaries and will link them with broader services such as livelihood training, employment support, entrepreneurship programs, microcredit, and mentorship.

By integrating cash transfers with skills development and economic opportunities, the program aims to improve the job readiness and income potential of about 2.5 million individuals. The World Bank underscores this approach as a "graduation strategy", designed to lift poor households out of poverty and into the labor market, thereby reducing long-term dependence on welfare.

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A Strategic Partnership for Sustainable Development

Commenting on the significance of the deal, Dr. Gayle Martin emphasized,

“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. This financing package will be a game changer for job creation by enhancing trade and export competitiveness and helping the most vulnerable graduate from social protection programs and get ready for the job market.”

Mr. Shahriar Siddiky added,

“Bangladesh and the World Bank have a strong and longstanding partnership to help the country achieve inclusive growth and its development aspirations. These projects will be critical for the country’s climate resilience and a prosperous future.”

The funding comes from the World Bank’s International Development Association (IDA), which has supported Bangladesh since its independence. To date, the World Bank has committed over $45 billion in grants, interest-free loans, and concessional credits, making it one of Bangladesh’s most consistent development partners.

Outlook

As Bangladesh eyes middle-income status and builds resilience against the twin challenges of climate change and economic inequality, this new financing agreement marks a pivotal step toward sustainable development. The Bay Terminal and SSPIRIT projects are expected to not only reshape the country's physical infrastructure but also reform the human capital and social systems necessary for long-term prosperity.