World Bank approves $250 million loan to Bangladesh

The World Bank has approved a $250 million loan for Bangladesh to enhance transparency, accountability, and institutional efficiency across five key government agencies.

The financing, titled the Strengthening Institutions for Transparency and Accountability (SITA) project, was approved by the World Bank’s Executive Directors in Washington, D.C., according to a press release issued by the bank.

Under the SITA project, the loan will support capacity development at the Bangladesh Bureau of Statistics (BBS), National Board of Revenue (NBR), Planning Commission, Central Procurement Technical Unit (CPTU), and the Office of the Comptroller and Auditor General (OCAG). The project aims to modernize operations through digitalization, improve revenue collection, streamline procurement, and strengthen financial audits.

“This investment will support transparency, reduce corruption, and help build capable public institutions for an emerging economy,” said Gail Martin, the World Bank’s Acting Country Director for Bangladesh.

The bank noted that second-generation e-Government Procurement (e-GP) systems will be introduced and expanded, while digital tools will be used to modernize public auditing processes.

In parallel, the World Bank is preparing a separate Development Policy Credit (DPC), expected to be placed before its board later this month. The DPC will support broader reform initiatives in revenue mobilization, banking, data transparency, public service delivery, and financial oversight.

Sulemane Coulibaly, the bank’s Lead Country Economist and team lead for the project, said the initiative would strengthen overall government performance, a key driver of sustainable economic growth.

Since independence, Bangladesh has received over $45 billion in grants and low-interest loans from the World Bank. It currently ranks among the top recipients of concessional IDA financing globally.