Bangla Version Dhaka, 15 October 2006: The Government of Bangladesh and the World Bank, today signed the Multi-Donor Trust Fund Grant Agreement for the Bangladesh Health, Nutrition and Population Sector Program (HNPSP), a way of channeling US$ 470 million of development partner grant funds into the country’s health sector. Seven development partners are pooling their finances for the program in a Multi-Donor Trust Fund administered by the World Bank. These agencies are the UK’s Department for International Development (DFID), the European Commission (EC), the Embassy of the Kingdom of the Netherlands (RNE), the Swedish International Development Cooperation Agency (Sida), and the United Nations Fund for Population Activities (UNFPA). The Canadian International Development Agency (CIDA), and the Federal Republic of Germany through KfW have also made pledges.
The HNPSP (2003-2010) is designed to modernize the country’s health sector and accelerate progress towards reaching the health related Millennium Development Goals and is supported by US$ 4.2 billion in Government and donor funding over the period. HNPSP builds on Bangladesh’s achievements in the health sector, targeting resources at the poor and aiming to create a health care system that is efficient and accountable to users. The Government of Bangladesh will finance around 70 per cent of program and development partners around 30 per cent.
The signing ceremony at the Sonargaon Hotel, was attended by Government officials, development partners, civil society, and media. Mr. Ismail Zabihullah, Secretary, Economic Relations Division and Ms. Christine Wallich, World Bank Country Director signed on behalf of the Government and the World Bank, respectively. Dr. Khandaker Mosharraf Hossain, Minister for Health and Family Welfare was present during the signing ceremony as Chief Guest. Mr. Stefan Frowein, Ambassador of the Delegation of the European Commission, Mr. AKM Zafar Ullah Khan, Secretary, Ministry of Health and Family Welfare, and Prof. Wahiuddin Mahmud were present as distinguished guests.
Dr. Khandaker Mosharraf Hossain, Minister for Health and Family Welfare said: “This is a proud moment for the Government of Bangladesh and it highlights the strong commitment of all the development partners and the people of Bangladesh to the health, nutrition and population sector. Bangladesh has made remarkable progress in achieving the health-related Millennium Development Goals and we are making relentless efforts to continue on this trend.”
Stefan Frowein, Ambassador of the Delegation of the European Commission said:“It is foreseeable that implementing a programme of this scope will have to overcome a large number of obstacles. However, the development partners are committed to fully support the Government in achieving the health related MDG targets and in implementing reforms to make health services fit for the future”.
Christine Wallich, Country Director World Bank said: “The success in cutting child mortality rates and the widespread immunization campaigns are just two examples of the great strides Bangladesh has made in improving the health of its citizens. With HNPSP the country now has the opportunity to take the next step and establish a health care system that is effective, accountable and responsive to the needs of users.”
Total donor support to HNPSP is around US$1.25 billion of which US$ 470 million will eventually be pooled under the Multi-Donor Trust Fund Grant Agreement. Pooling funds reduces Government transaction costs and avoids the duplication of donor oversight functions.
In addition the World Bank is providing a US$ 300 million credit with other development partners providing US$ 500 million outside the pool. The Bangladesh HNPSP is a good example of a large group of donors working together to support a key sector with harmonized procedures.
Contacts:
Rezwan Alam (8802) 815-9015, Ext 4242 E-mail: salam3@worldbank.org
For more information on the World Bank in Bangladesh , please visit : www.worldbank.org.bd& www.worldbank.org
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