Bangladesh will receive a $120 million credit from the World Bank to implement a project on development of the private sector aiming at economic growth and creation of jobs.

The World Bank board of directors at a meeting in Washington on Tuesday approved the loan, according to a message received in Dhaka on Wednesday.

It said Bangladesh Private Sector Development Support Project is designed to facilitate investment in growth centres in the emerging manufacturing and services sectors of the economy with the aim of generating employment.

The project seeks to address key constraints to growth, including access to serviced land, cumbersome procedures, access to skilled labour, and access to finance.

“To achieve Bangladesh’s development goals requires accelerated, sustainable, and inclusive growth,” said WB Country Director Ellen Goldstein.

“Creating productive employment for the estimated 2 million new labour entrants every year will largely depend on creating an environment conducive to private sector investment.”

The country has attained an average gross domestic product (GDP) growth rate of 6.1 percent between 2005-2010 despite the effects of global food, fuel and financial crises.

The present government envisages a growth rate of 8 percent a year and a reduction in poverty to 15 percent of the population by 2021.

The project is expected to increase the capacity of government institutions in the development of economic zones and provide financing for necessary infrastructure in economic zones starting with the Kaliakoir Hi-Tech Park and will invest in up to two more economic zones.

In addition, it will create opportunities for cooperation and knowledge sharing between enterprises within the economic zones and their suppliers by providing training and supporting linkages between firms.

A $17 million technical assistance from the UK Department for International Development (DFID) will be added to the project.

“The new locations for economic zones and enhanced policy framework will catalyse private investment in Bangladesh by increasing capacity and reducing constraints to private sector development,” said Michael Wong, team leader for the project.

“This is needed to fuel the economic growth necessary to achieve the government’s job creation and poverty reduction targets.”

News: Daily Sun/ Bangladesh/ Mar-03-2011