The United States Agency for International Development (USAID) will provide $202.25 million grant to Bangladesh for its three sectors namely good governance, social, human and economic opportunity and resilience.
Bangladesh and USAID on Sunday signed the 6th amendment of the ‘The Development Objective Grant Agreement (DOAG)’ in this regard at the State Guest House Padma in the capital.
Economic Relations Division (ERD) Additional Secretary AKM Shahabuddin and USAID Mission Director Reed J Aeschliman inked it on behalf of their respective sides.
Finance and Commerce Adviser Dr Salehuddin Ahmed, visiting US Assistant Secretary for International Finance of the US Department of Treasury Brent Neiman and US State Department Assistant Secretary for South and Central Asia Donald Lu, among others, witnessed the signing ceremony.
On September 27, 2021, a new DOAG was signed between Bangladesh and USAID for the period of 2021-2026.
By implementing the DOAG, USAID is committed to contributing a total of $954 million. So far upto 5th amendment, USAID has provided $425 million to Bangladesh. The USA is a trusted development partner of Bangladesh since 1972. Under an umbrella agreement titled ‘Economic Technical and Related Assistance’ which was signed in 1974, the USA has contributed more than $8 billion till today in different sectors like democracy and governance, food security, health and education, global climate change.
The country provides most of its development assistance through USAID, United States Department of Agriculture (USDA) and some other government and non-government organisations. Talking to reporters after the ceremony, finance adviser Dr Salehuddin
Ahmed said that the government discussed the issues with the visiting US delegation relating to economic reforms, availing support in financial sector and the measures for bringing back siphoning off money from abroad.
“The discussion with the US delegation mainly focuses on with the treasury department and with USAID where the issues relating to financial sector reforms to ensure good governance and availing support in financial sector got priority,” he said.
Besides, there were discussions on export diversification, availing technical assistance in trade and exploration of markets. “We've to move ahead with specific work plan and they (USA) have assured us of providing support,” he said.
Regarding the grant agreement amendment, the adviser said that the USAID would provide additional $202.25 million under the fresh amendment to the agreement.
When asked whether there was any discussion on bringing back siphoning of money from abroad, Dr Salehuddin said there were discussion in this regard while discussion in details would be held later on.
Besides, he said there was also discussion on revenue sector reforms and tax reforms.
Änjali Kaur, the United States Agency for International Development (USAID) Deputy Assistant Administrator for Asia, said that under the fresh agreement, some $200 million support would be provided to the interim government of Bangladesh in priority sectors.
“We've consulted, listened and will work with the interim government and here we're ready to deliver through this agreement,” she added.
She opined that this support would help the government to move ahead it's priority works and would also help to ensure inclusive prosperity for the people of Bangladesh.
Anjali said this means boosting economic stability, improvement in health and good governance and young generation's empowerment.
