$23m IDA loan for urban poor, village community
The government has signed two separate agreements worth US$ 23 million with the International Development Association (IDA) to support village community as well as underserved segment of the urban poor in Dhaka city.Secretary of the Economic Relations Division (ERD) M Aminul Islam Bhuiyan and World Bank (WB) Country Director Xian Zhu signed the agreements on behalf of the two sides at ERD on June 17, says a press release. An additional financing of US$8 million to the ongoing Social Investment Programme Project (SIPP) will continue to support development of sustainable and effective institutional arrangements at the village level. Being implemented by the Social Development Foundation since 2003, the SIPP has been involving the communities in decision-making and implementation. This innovative approach has saved very significant costs compared to similar works executed by public sector agencies. Another additional financing of US$ 15 million to the ongoing Second Poverty Alleviation Microfinance Project will help offer microfinance services to non-motorised transport pullers and poor rickshaw owners to restore their livelihoods affected earlier by the non-motorised transport ban. Palli Karma Sahayak Foundation (PKSF), the implementing agency since 2001, will also administer the additional financing which is a separate loan and constitutes a new loan commitment. The credit from the IDA, the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period, and it carries a service charge of 0.75 percent.
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