World Bank Backs Bangladesh with $1.1 Billion for Emergency Projects

The first operation, the Emergency Support for Food Security Project, will provide $300 million in time-bound financing to help Bangladesh import fertilizers needed for the Aman and Boro rice growing seasons.

The World Bank has approved about $1.1 billion for two emergency projects to help Bangladesh manage rising pressure from global fertilizer and fuel price volatility, protect food security and strengthen the country's ability to respond quickly during economic shocks. The financing comes as Bangladesh continues to face higher costs linked to the conflict in the Middle East, which has disrupted global fertilizer and fuel markets while putting additional strain on the country's public finances. The support is designed to help safeguard agricultural production, maintain essential services and protect vulnerable households and businesses from the impact of external crises.

World Bank Division Director for Bangladesh and Bhutan Jean Pesme said rising prices for food, fertilizer and fuel have placed a heavy burden on Bangladesh's economy, particularly affecting smallholder farmers and low-income families. He said the new financing will help ensure fertilizer supplies for rice production while protecting livelihoods, jobs and critical public services.

Fertilizer Support to Safeguard Rice Production

The first operation, the Emergency Support for Food Security Project, will provide $300 million in time-bound financing to help Bangladesh import fertilisers needed for the Aman and Boro rice growing seasons. The funding will support fertilizer imports between July and October 2026 for the Aman season and October 2026 and April 2027 for the Boro season.

Bangladesh imports more than 85% of its fertilizer requirements, making the country highly vulnerable to disruptions in international supply chains and price fluctuations. The project will finance the import of 600,000 metric tons of essential fertilizers, with half of the total consisting of urea. These supplies are expected to support rice cultivation across 1.4 million hectares, benefiting thousands of smallholder farmers who depend on reliable fertilizer access to maintain crop yields.

World Bank Lead Economist and Task Team Leader Souleymane Coulibaly said the Aman and Boro seasons together account for around 90% of Bangladesh's total rice production. Since nearly half of the country's population depends on agriculture for employment, maintaining fertilizer supplies is essential not only for food security but also for protecting rural incomes and preventing further poverty.

Emergency Financing to Support Families and Businesses

The second operation, the Contingent Emergency Response Project, will provide $713 million to support rapid emergency spending during crises. The financing will help the government deliver cash transfers and livelihood assistance to affected households as well as micro, small and medium-sized enterprises facing economic hardship.

The project will also finance fuel and energy supplies needed to keep essential services operating, including the transport and delivery of food, medicines, medical equipment, electricity and water. According to the World Bank, the project is scheduled to disburse funds by 30 June 2026, allowing resources to reach priority sectors quickly during emergencies.

World Bank Lead Disaster Risk Management Specialist and Task Team Leader Lesley Jeanne Yu Cordero said the initiative gives Bangladesh immediate access to financing through the World Bank's crisis preparedness and response toolkit. The project will redirect unutilized funding from existing World Bank operations, allowing resources to be deployed where they are needed most without delay.

The World Bank believes the combined financing package will strengthen Bangladesh's resilience against external shocks by protecting agricultural production, supporting vulnerable communities, preserving jobs and ensuring that critical public services continue operating during periods of global uncertainty.