World Bank on Tuesday approved a $120 million concessional IDA credit for Bangladesh Private Sector Development Support Project, said a statement.

The credit from the International Development Association (IDA), the World Bank's concessional lending arm, has 40-year maturity, including a 10-year grace period and it carries a service charge of0.75 percent.

The project will facilitate investment in growth centres in the emerging manufacturing and services sectors of the economy with an aim of generating employment.

Bangladesh has achieved an average GDP growth rate of approximately 6.1 percent between 2005 and 2010 despite the global financial crisis and global food price shocks. Going forward, the government envisages a growth rate of 8 percent a year and a reduction of poverty to 15 percent of the population by 2021.

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, the country requires accelerated, sustainable, and inclusive growth,” said Ellen Goldstein, World Bank country director.

The project will 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.

The project would also benefit from approximately $17 million of funding from the UK Department for International Development (DFID), mainly for technical assistance and capacity building for Bangladesh zone development partners.