Bangladesh: Bangladesh Sustainable Economic Recovery Program (Subprogram 1)

OBJECTIVE

To help the Government of Bangladesh implement policy reforms to accelerate economic recovery from the COVID-19 pandemic.

DESCRIPTION

The proposed Program (Sub-program 1) is a policy-based financing to help the government implement reforms to accelerate economic recovery from the COVID-19 pandemic by enhancing: (i) fiscal space through improved public financial management (PFM) for revenue and public expenditure, and (ii) enabling environment to foster the growth of cottage, micro, small and medium-sized enterprises (CSME) and associated employment, in line with initiatives of country’s Eighth Five Year Plan, 2021–2025. This is to be supported under AIIB’s COVID-19 Crisis Recovery Facility (the Facility) and co-financed with the Asian Development Bank (ADB).

ENVIRONMENTAL AND SOCIAL INFORMATION

The proposed Program will be co-financed with ADB as the lead co-financier. To ensure a harmonized approach to addressing environmental and social (ES) aspects of the Program, as permitted by AIIB’s ESP, ADB’s SPS will apply to the Program in lieu of AIIB’s ESP. The Bank has reviewed ADB’s SPS and is satisfied that: (i) ADB’s SPS is consistent with the Bank’s Articles of Agreement and materially consistent with the provisions of the Bank’s ESP; and (ii) the monitoring procedures that are in place are appropriate for the Program.

The Program is expected to benefit all citizens of Bangladesh, including poor and vulnerable groups unemployed because of COVID-19 and underserved segments of the market, including CSMEs. The poor and vulnerable groups are anticipated to be benefited through improved targeting of the delivery of social safety nets. The Program is also likely to enhance gender equality and women’s empowerment through access to credit from the formal banking channels and participation in the decision-making process.