ZCZC
BSS-30
LOAN-AFD-CASH-COVID
AFD approves 150m euro loan for cash transfer, COVID-19 response
DHAKA, Aug 6, 2020 (BSS) – Agence Française de Développement (AFD) has approved 150 million euro loan to support Bangladesh’s cash transfer programs and COVID-19 response.
The Executive Board of the French Development Agency (Agence Française de Développement-AFD) recently approved the concessional loan of 150 million euro to support Bangladesh with its cash transfer programs and COVID-19 responsiveness.
According to a release, the loan will contribute towards the World Bank supported Cash Transfer Modernization Project which seeks to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations by modernizing service delivery.
It would also support the government efforts to address the social and economic consequences of the COVID-19 pandemic, the release said.
It said the project will be co-financed by AFD and the World Bank (as a lead partner), and includes three components, which are Enhancement of Cash Transfer Programs, which incentivizes actions towards improving the business processes under selected cash transfer programs; Modernization of Service Delivery, which provides technical assistance to support the enhancements of technology assets, utilize integrated information systems for targeting and payment, improve citizen engagement, and strengthen the capacity of human resources, and Contingent Emergency Response (CER) to allow project financing to be mobilized rapidly in response to a natural or human-induced shock, disaster or crisis.
The CER component will support the government’s response to the COVID-19 crisis, the release added.
It said the loan will provide co-financing of the Old Age Allowance program under the social welfare ministry and department of social services until 2023. It will directly benefit the country’s most vulnerable populations who are beneficiaries of this, as well as other social welfare ministry cash transfer programs, as well as non-beneficiaries who may qualify for these programs
Since 2012, the AFD supports projects in urban development and infrastructure, as well as in the power and green energy sectors. In addition, AFD also focuses on corporate and social responsibility. As of 2020, AFD has committed 761 million euro to Bangladesh including 25 million euro in the form of grants.
Through this new loan and an upcoming grant of 1 million euro (2050 facility), the AFD will contribute to improved resilience climate change adaptation by reinforcing the social protection system.
BSS/pr/SAS/GA/1625 hrs