‘Don’t take World Bank’s $2b', TIB tells govt

Transparency International Bangladesh (TIB) has voiced concerns over the World Bank’s intention of expanding its lending portfolio by providing a loan of $2 billion to Bangladesh as climate finance over the next three years.

In a statement on Thursday, TIB executive director Iftekharuzzaman called upon the World Bank to recognise that to address challenges of climate change, Bangladesh is entitled to compensation in the form of grants, rather than loans.

“It is unacceptable that the Bank appears to see an opportunity for expanding its business of lending in Bangladesh in the name of standing by ‘the poor and the hardest hit’ as a result of global climate change,” Iftekharuzzaman said.

Welcoming WB president Jim Kim’s emphasis on governance and zero tolerance against corruption during his visit to Dhaka, the TIB chief said if the Bank is genuinely interested to support Bangladesh on account of climate change, it should refrain from increasing further indebtedness of Bangladesh.

“Instead, the Bank should seek ways to contribute to the processes that may ensure that Bangladesh receives the promised compensation from the developed countries responsible for climate change,” he said.

As one of the countries most affected by global climate change, the statement said, Bangladesh is already acutely vulnerable. The climate-affected people of this country cannot afford to further accentuate their vulnerability in the form of interest payable to the mega lending group even if such loans are offered at the best possible concessional terms.

“If the World Bank is interested to expand its lending business in Bangladesh we ask it to explore other areas of public interest where, unlike climate finance, interest-free grants are unavailable. The Bank will do well to apply whatever capacity and expertise it may have to facilitate easier and enhanced scope of Bangladesh’s access to grants from such sources as the Green Climate Fund,” the statement added.

TIB called upon the government not to accept any loans for climate finance, especially when grants should be made available as compensation.

“We also appeal to the government to deploy all political, technical and diplomatic skill and expertise at its disposal to persuade the developed countries to deliver on their commitment to provide compensation”, the statement said.