The World Bank has approved a $640 million loan to Bangladesh for two projects aimed at improving gas supply and air quality.
"Enhancing energy security and air quality are critical economic and development priorities for Bangladesh," said Gayle Martin, the World Bank's interim country director for Bangladesh, in a statement released on Wednesday.
"By addressing the root causes of gas supply constraints and urban air pollution, these two projects will help Bangladesh boost economic growth, improve productivity, and create jobs," Martin said.
The Energy Sector Security Enhancement Project ($350 million) will improve gas supply security by allowing Petrobangla, the state-owned oil and gas company, to obtain more affordable financing.
The Bangladesh Clean Air Project ($290 million) will take a comprehensive approach to tackle air pollution, said the global lender.
In Bangladesh, air pollution caused over 159,000 premature deaths and 2.5 billion days of illness, with estimated health costs equivalent to 8.3 percent of the gross domestic product (GDP) in 2019, said the World Bank.
Dhaka remains one of the most polluted cities in the world, with annual levels of fine particulate matter (PM2.5) exceeding by 18 times the WHO Air Quality Guidelines, it added.
The project aims to improve vehicle emissions control and introduce a fleet of 400 zero-emission electric bus services by replacing aging, polluting diesel buses. Under the project, the interventions in the transport sector are expected to reduce primary PM2.5 emissions by approximately 2,734 metric tons per year.
By SM Najmus Sakib
Anadolu Agency