Municipal Governance and Services Project

closed

The objective of the Municipal Governance and Services Project for Bangladesh is to improve municipal governance and basic urban services in participating Urban Local Bodies (ULBs), and to improve recipient's capacity to respond promptly and effectively to an eligible crisis or emergency. There are four components to the project, the first component being municipal governance and basic urban services improvement. This component will provide financial support to 26 pre-selected ULBs with high economic growth and job creation potential, located along the three growth corridors and three district towns in the South. The second component is the Bangladesh Municipal Development Fund (BMDF) demand-based financing for urban services. Provision of demand-based sub-credits by BMDF to eligible ULBs for basic urban services improvement investment costs, at an 80:20 grant to loan ratio. ULBs will be required to finance 10 percent of investment costs. The third component is the capacity building and implementation support (total cost US$53.91 million, including International Development Association, or IDA. Finally, the fourth component is the contingent emergency response. This component will support, at GoB request, response and reconstruction activities following an adverse natural or man-made event that causes a major disaster, by re-allocating the IDA credit to this component.