WB may provide $400 million for Rohingyas

The World Bank (WB) is likely to provide a grant of US$ 400 million for the rehabilitation of Rohingya refugees within next two years, officials said on Monday.

The Washington-based international financial institution has backtracked from its earlier stance on providing the loan for the Rohingyas as the Government of Bangladesh raised its reservations about the credit, they said.

"The WB has formally agreed to provide the grant for the Rohingyas," said Kazi Shofiqul Azam, Secretary of the Economic Relations Division (ERD).

They have recently completed a mission to explore the potential of support, he told the FE.

Earlier, the WB offered Bangladesh a loan worth nearly US$ 2.0 billion from its 'Refugee Fund'.

The government was reluctant to receive the credit rather it requested the global lender to provide a grant for the rehabilitation work of the displaced people of Myanmar.

The Asian Development Bank (ADB) was also following the strategy like the World Bank, said an ERD official.

The ERD has recently requested the Manila-based lender to provide the grant instead of the loan for the Rohingya rehabilitation work.

Earlier, Bangladesh received ADB offer for financial support for the Rohingya rehabilitation work.

"If the ADB comes forward with the grant, we will welcome it," said Mr Azam.

The proposed WB funds will be utilised for education, water and sanitation, health, and infrastructure development for the Rohingya refugees.

Some ministries including health, education, local government & rural development and disaster management are expected to carry out the rehabilitation work with financial support from the WB, said an ERD official.

Insiders said the influx of Rohingyas to Bangladesh has affected its economy seriously as the impoverished Cox's Bazar region, the extreme southern part of the country, has to accommodate more than 1.0 million refugees.

Tourism in Cox's Bazar has been affected severely due to the influx of the Rohingya people.

[email protected]