After more than seven years of discussion, the government is set to finally undertake two projects involving Tk 8,483 crore for the Rohingya and host communities.

About 91 percent of the funds would be from the World Bank in loans and grants.

The projects were approved at yesterday's Ecnec meeting presided over by Prime Minister Sheikh Hasina.

World Bank to provide Tk 4,475cr as loan and Tk 3,244cr in grants

Briefing journalists after the meeting, Planning Minister Abdus Salam said these projects are difficult and complex as seven ministries are involved.

He said the projects will be coordinated by the Economic Relations Division.

Of the money required, the WB will provide Tk 7,720 crore ($700 million) -- Tk 4,475 crore in loan and Tk 3,244 crore in grants.

The government will bear the rest.

The projects comprise 19 components, including addressing health, education and power issues, restoration of forests, and development of infrastructure.

Since 2017, the government has been discussing with the global lender about supporting the Rohingya and host communities.

At one point, the WB proposed funding only for the Rohingyas, but the government wanted funds for the host communities as well.

Planning Minister Salam said the World Bank initially proposed giving funds solely for the Rohingyas, but the premier did not agree to that since the host communities have also been suffering immensely.

Talking to journalists after the meeting, Satyajit Karmaker, member (senior secretary) of the Programming Division, Planning Commission, said the grants will have to be spent within a year.

Satyajit said the WB earlier said it would not provide any grants for the host communities and would only give loans to support the Rohingyas.

"But the government said it would not be possible to help the Rohingyas with the loans, as it would be a huge burden for the government to pay the interest."

Later, the government began negotiations with the WB and held multiple discussions, resulting in the loans and grants, he added.

He told journalists that the tenure of the loans for the host communities would be four years and the interest rates were low.

Under cluster projects, the cost of the first project, titled "Host and Forcibly Displaced Myanmar Nationals (FDMN)," is Tk 4,182 crore, with the global lender providing Tk 3,815 crore in loans and grants.

The cost of the second project, titled "Inclusive Services and Opportunities (ISO) for the host communities," is Tk 4,401 crore, with the WB funding Tk 3,904 crore in the forms of loans and grants.

Apart from the two projects, the Executive Committee of the National Economic Council (Ecnec) also approved nine more projects involving over Tk 5,854 crore.

According to UNHCR, the number of registered Rohingyas living in the country is 10 lakh.