ADB
ADB to provide $250 million to Bangladesh to boost social protection system
Bangladesh will receive $250 million policy-based loan from the Asian Development Bank (ADB) under an agreement signed with the Manila-based aid agency on Tuesday.
The fund will be used to further improve the social protection system in Bangladesh for supporting the vulnerable population against socioeconomic challenges, said a press release of ADB.
Economic Relations Division Secretary Fatima Yasmin and ADB country director Edimon Ginting virtually signed the agreement from their respective sides, said the press release.
The programme aims to accelerate reforms in increasing the coverage and efficiency of the social protection, improving the financial inclusion of disadvantaged people, and strengthening the response to diversified protection needs.
The loan is the second subprogram of the Strengthening Social Resilience Program (SSRP) approved in 2021, which helped implementation of institutional and policy reforms that strengthened the inclusiveness and responsiveness of social protection in Bangladesh.
ADB Country Director Ginting said that the integrated social protection programme will improve social safety net management, deepen financial inclusion, address needs based on demographic, geographical, age, gender, and other diversities; and widen the coverage and efficiency of social protection.
READ: ADB approves $250mn for Bangladesh social resilience programme
The reforms supported under the programme will help improve efficiency by digitalization and integration of systems as well as harmonization of government’s social protection programs.
The reforms will help Bangladesh bring at least 80 per cent of social protection programs with cash-based benefits under a standardized and integrated management system with connection to G2P platform by June 2023.
At least 60 per cent of cash-based social protection benefits will be delivered to disadvantaged women, and social protection program fragmentation will be reduced in three ministries. The number of active mobile financial services accounts will be increased annually by 5%.
At least 50 mobile clinics will start operating in 10 city corporations. At least one social insurance scheme (contribution-based protection scheme) will be initiated on a pilot basis by 2023.
ADB reaffims commitment to Bangladesh's sustainable development
The Asian Development Bank (ADB) will prioritise its assistance towards Bangladesh for graduation from LDC, climate change and sustainable development goals.
This is to help the country achieve its goal of becoming an upper middle-income country by 2031 and a high-income country by 2041.
ADB Vice-President Shixin Chen made this commitment during his meeting with Prime Minister Sheikh Hasina on May 9 in Dhaka, according to an ADB release.
He also reaffirmed ADB’s commitment to supporting rapid recovery from the COVID-19 pandemic, as well as inclusive, resilient, and green development in Bangladesh.
“In alignment with the government’s policies, ADB’s support for Bangladesh will focus on boosting competitiveness, employment, and private sector development; promoting green growth and climate resilience; and strengthening human capital and social protection," Chen told the PM at the meeting.
In his meeting with the finance minister and ADB Governor A H M Mustafa Kamal, Chen commended the overall management of the economy and swift actions to support strong economic recovery from the pandemic.
He also emphasized the importance of continued prudent macroeconomic management, in the backdrop of heightened external risks.
READ: Kamal thanks ADB for budget aid during pandemic
Chen also met Railway Minister Nurul Islam Sujon and discussed reforms to improve operational efficiency of the railways, faster project implementation, and ensure high project readiness for potential future projects, including the Dhaka–Cumilla chord line project currently being prepared with ADB’s support.
Kamal thanks ADB for budget aid during pandemic
Finance Minister AHM Mustafa Kamal on Monday thanked Asian Development Bank (ADB) for providing Bangladesh USD $ 1 billion as budget aid to face the adverse economic impact of the Covid-19 pandemic.
The minister was addressing a meeting at a city hotel with visiting ADB vice president (operation) Shixin Chen.
Kamal praised the ADB’s role as the ’main development partner’ of Bangladesh. Since independence, Manila-based and mainly Japan-funded ADB provided $27 billion loan aid to the country.
Also read: PM urges ADB to finance Bangladesh's Delta Plan 2100
The finance minister hoped for continued cooperation of ADB for socio-economic development and poverty alleviation in Bangladesh.
In response, ADB’s vice president Chen has assured Kamal to continue ADB’s aid for recovery of the economy from the loss of pandemic and for socio economic improvement.
Bangladesh Bank’s Governor Fazle Kabir, finance secretary Abdur Rouf Talukther, Economic Relation Division Secretary Fatema Yasmin, ADB’s deputy director Manmohan Parkash, Country Director Mr. Edimon Ginting, among others, present in the meeting.
Also read: ADB approves ceiling for policy-based lending
PM urges ADB to finance Bangladesh's Delta Plan 2100
Prime Minister Sheikh Hasina on Monday sought support from the Asian Development Bank (ADB) to implement Delta Plan 2100.“This Delta Plan is very important for Bangladesh,” she told ADB vice president (operations-1) Shixin Chen when he called on her at her official residence Ganobhaban.
In 2018, the government launched the Delta Plan 2100 to secure the future use of the country's water resources and mitigate the impact of climate change and natural calamities.
PM’s press secretary Ihsanul Karim briefed reporters after the call on.
Hasina also urged the Manila-based multilateral donor, to help foster regional cooperation, particularly in the areas of connectivity, trade facilitation and energy cooperation.She said that the COVID-19 situation in Bangladesh is now under control and after a span of two years the people freely celebrated Eid festival last week.She highly appreciated the help of ADB during the COVID-19 pandemic.
Regarding the transition period of Bangladesh's graduation to a developing economy she said her government has taken various programmes to face it.She also mentioned that her government successfully brought 100 per cent of the country's population under electricity coverage.Referring to the Ashrayan Project-II the PM said that the government is now providing homes with lands to the homeless and landless people of the country aiming to give them a better life.
Read: AL wants election with participation of all parties: Hasan Mahmud“Their life standard has been upgraded,” she said.Talking about the food shortage due to the Russia-Ukraine war, the premier said that the government has taken programmes to grow more food.She said that the ICT sector of the country is developing fast contributing to econimic growth.Regarding the regional connectivity for development she said Bangladesh has opened the door for improving connectivity.
In this connection she said that routes that closed after 1965 war (between India and Pakistan) have been reopened.She sought participation of Bangladesh senior officials in the top management and administration of ADB to facilitate regional balance in recruitment.ADB vice-president Shixin Chen appreciated Bangladesh’s economic development despite pandemic under the excellent leadership of Prime Minister Sheikh Hasina.Bangladesh set one of the best examples to tackle the COVID-19 pandemic situation, he was quoted as telling the PM.The ADB official said Bangladesh has been able to keep the wheel of economy on and it's GDP this yeat is expected to grow by 7 per cent.
Read: Cyclone ‘Asani’ over Bay: Heavy rainfall likely in 3 divisionsThe ADB will always be with Bangladesh and help its development both in the urban and rural areas as it has strong ties with the country.Talking about the graduation of Bangladesh from the LDC status to a developing country he said it is usually critical and the country is doing well.Bangladesh is passing through the last phase of graduation, he said.The ADB official commended the government for launching private sector women capital development. Bangladesh, he said, has achieved huge development in the agriculture sector too.About the economic zones he said these will meet the demand of domestic and international markets.He expressed ADB’s interest to help Bangladesh in the social protection programmes.He apprehended that due to the Russia-Ukraine war there might be a shortage of food across the globe.Ambassador-at-large M Ziauddin, Principal Secretary Ahmad Kaikaus and Economic Relations Department (ERD) Secretary Fatima Yasmin, ADB Deputy Director General (South Asian Department) Manmohan Parkash and its country director Edimon Ginting were present.
Bangladesh economy to grow by 6.9% in FY2021-22, says ADB
Bangladesh’s gross domestic product (GDP) is expected to grow by 6.9 per cent in the running FY2021-22, according to an Asian Development Bank report released on Wednesday.
The bank’s Asian Development Outlook (ADO) 2022 said the growth forecast reflects rebound in external trade and recovery in domestic economic activities fuelled by implementation of stimulus packages and increased remittance.
Inflation is expected to increase to 6.0 per cent in FY2022 from 5.6 per cent in 2021, it said.
The current account deficit is likely to widen from 0.9 per cent of GDP in FY 2021 to 2.7 per cent of GDP in FY2022 on increase in imports and decline in remittance growth.
Read: ADB to provide $143 million to Bangladesh
The main risk to this growth projection is higher prices for oil and imports, and the loss of export sales beyond those built in the present forecasts, mainly due to the Russian invasion of Ukraine.
“The ongoing socio-economic recovery need to be accelerated by enhancing domestic resource mobilization, incentivizing the private sector to create products and services, promoting modern green technologies, and fostering knowledge and innovation,” said ADB Country Director Edimon Ginting.
“Building climate resilient infrastructure and services, introducing carbon tax on fossil fuels, and promoting green investments will help to further advance the current policy initiatives for managing climate change for inclusive and sustainable green growth,” Ginting added.
The report said that private investment will get stronger, reflecting a solid growth in private sector credit and imports of industrial raw materials and capital goods.
With large available funding, public investment will increase to support the implementation of priority large infrastructure projects. Growth in private consumption, however, may be affected by a decline in remittances.
Read: Finance minister thanks ADB for prompt assistance in tackling pandemic
Inflation is expected to reach 6.0 per cent in FY2022 from 5.6 per cent in FY2021 as price pressures are increasing from upward adjustment in domestic administered fuel prices, rising global food and fuel prices, and implementation of stimulus measures.
The report pointed out that managing climate change is critical to ensure inclusive and environmentally sustainable growth. As part of developing national adaptation plan by the government, a climate risk–informed master plan should be drawn up for each sector and development unit.
Capacity for better accessing and utilizing climate risk analysis needs to be mainstreamed in public financial management decisions across government.
Enabling policies are necessary for green investments, the development and adoption of green technologies, and for greening of existing industries, said the report.
ADB to provide $143 million to Bangladesh
The Asian Development Bank (ADB) on Thursday approved a $143 million loan package to support Bangladesh's efforts to accelerate growth by improving efficiency, predictability, and security of cross-border trade.
Bangladesh has been carrying out trade facilitation strategies to enhance export diversification and competitiveness by improving the quality of exports, signing bilateral trade and investment cooperation agreements, and promoting trade through better coordination among border agencies and private stakeholders, according to a press release.
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“ADB’s assistance supports the government’s goal of accelerating economic growth through industrialization and trade,” said ADB Principal Economist Tadateru Hayashi.
“The program will help diversify the country’s export products and destinations. Improved connectivity will facilitate subregional trade and commerce among the South Asia Subregional Economic Cooperation countries.”
The ADB loan package includes a $90 million policy-based loan, which will support reforms in areas including bringing the country’s customs legal frameworks in compliance with international standards, improving cargo clearance processes, and strengthening the capacity of the National Board of Revenue (NBR) and the Ministry of Commerce.
To complement the policy reforms, a $53 million project loan will construct integrated land customs stations and land ports of NBR and the Bangladesh Land Port Authority (BLPA) at Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs). Facilities and equipment for customs clearance and cargo transshipment operations will also be installed.
Read: Reduce import duty on main raw materials, plastic goods manufacturers urge govt
ADB will provide a $1.5 million technical assistance grant from its Technical Assistance Special Fund to support the modernization of the customs legal framework and coordination among the border agencies, prepare an operationalization plan of central customs facilities, strengthen NBR’s capacity to implement modernized customs operations at BCPs, and build the project implementation capacity of NBR and BLPA.
Finance minister thanks ADB for prompt assistance in tackling pandemic
Finance Minister AHM Mustafa Kamal has thanked Asian Development Bank (ADB) for its prompt assistance in overcoming the adverse effects of COVID-19 pandemic.
Illustrating the ADB’s assistance to Bangladesh he said ADB has provide USD $ 1.0 billion budget support for potential economic impact of Coronavirus outbreak, $100 million for in health assistance for COVID-19 Response Emergency Assistance project, $940 million loan assistance for purchase of COVID-19 vaccine and $9.34 million grant assistance during the pandemic.
READ: Govt, ADB ink $13.5 mln loan deal to improve irrigation management
Kamal came up with remarks while speaking in an exchange meeting with Executive Director of ADB Sameer Kumar Khare at his secretariat office on Monday.
Abdur Rauf Talukder, Senior Secretary, Finance Division, Fatima Yasmin, Secretary, Economic Relations Division, Edimon Ginting, Country Director, Asian Development Bank, Bangladesh Office, among others, were present.
ADB is one of the leading development partners in Bangladesh. ADB has provided $19.7 billion in loan assistance to Bangladesh since 1982.
Kamal particularly urged the ADB to provide more development assistance to address the challenges following the transition from LDCs to developing countries.
READ: ADB provides $150 mln loan to support small-scale employment creation project
He stressed the need for continuing such cooperation between Bangladesh and ADB in the future to achieve the overall development goals.
In response Sameer Kumar said ADB has been cooperating from the very beginning to restore the social and economic security of Bangladesh to overcome the pandemic and will continue to be on the side of Bangladesh in the future as well.
Govt, ADB ink $13.5 mln loan deal to improve irrigation management
Bangladesh and Asian Development Bank (ADB) on Thursday signed a $13.5 million additional loan agreement to improve management, operation, and maintenance of large-scale irrigation schemes and protect productive lands from flooding.
The additional loan will scale up the ongoing $46 million Irrigation Management Improvement Project, according to a press release.
Economic Relations Division (ERD) secretary Fatima Yasmin and ADB Country Director Edimon Ginting virtually signed the loan agreement on behalf of Bangladesh and ADB respectively.
The project will repair 17 kilometers of coastal embankment and re-excavate over 400 kilometers of canal drains.
Also read: ADB provides $150 mln loan to support small-scale employment creation project
By 2024, it will increase dry-season irrigation area under the Muhuri irrigation system by 60% to 18,000 hectares.
The average yield of irrigated winter paddy (boro) is expected to increase to 4 tons from 3 tons in 2013.
The project will ensure employment of at least 2 percent women as pump operators, 5 percent as mobile water unit vendors, and 5 percent women as construction workers, said the release.
The assistance supports improvement of climate resilience by promoting improved flood protection, reservoir management, and water use efficiency.
Country Director Edimon Ginting said that the assistance will help manage the effects of water abundance and scarcity by improving irrigation management and infrastructure.
Also read: ADB to provide $150 million targeted at CMSE's, job creation
“To promote sustainability in water sector, this project will foster private sector participation by transferring management, operation, and maintenance of irrigation schemes from government departments to private operators,” he said.
He also mentioned that it will also introduce innovative infrastructure modernization, such as replacing diesel motor pumps with electric pumps, developing highly efficient buried-pipe tertiary distribution systems, and installing prepaid card meter systems.
ADB provides $150 mln loan to support small-scale employment creation project
Asian Development Bank (ADB) has provided (USD) $ 150 million loan aiming to facilitate employment creation and help retuning migrants, youth and rural entrepreneurs recover from the adverse impact of the COVID-19 pandemic.
A loan agreement was signed between the government and ADB in this regard on Monday.
Fatima Yasmin, secretary, Economic Relations Division (ERD), and Edimon Ginting, country director, Bangladesh Resident Mission of ADB, signed the loan agreement on behalf of their respective sides.
Read: ADB to provide $150 million targeted at CMSE's, job creation The project will be implemented by Bangladesh Bank (BB) with a view to foster recovery from the detrimental effects of Covid-19 pandemic by restoring employment, income and economic activities.
Soft loans will be provided to unemployed or underemployed youth, returning migrants and rural entrepreneurs with a focus on women. ADB is one of the largest multilateral development partners of Bangladesh extending assistance to the country since it became a member of ADB in 1973. The ADB’s total loan to Bangladesh till now is more than $26.75 billion and total grant is about $1053 billion.
Read: ADB approves $150 million loan to Bangladesh to help recovery of Covid-hit enterprises The development assistance of ADB mainly focuses on power, energy, local government, transport, education, agriculture, health, water and financial sector development of Bangladesh.
ADB to provide $150 million targeted at CMSE's, job creation
Bangladesh and the Asian Development Bank (ADB) on Monday signed agreements for $150 million in loan financing for cottage, micro, and small-sized enterprises (CMSEs) and creating jobs for promoting socio-economic recovery after the coronavirus disease (COVID-19) pandemic.
The assistance under the Supporting Post-COVID-19 Small-Scale Employment Creation Project will rejuvenate CMSEs operated by youth, rural entrepreneurs, returning migrant workers, particularly women, who have been hit hard by the pandemic, according to an ADB release.
Economic Relations Division (ERD) Secretary Fatima Yasmin and ADB Country Director Edimon Ginting signed the agreements on behalf of Bangladesh and ADB, respectively at a ceremony at ERD.
The loan to Bangladesh Bank, the nation’s central bank, will be on-lent to participating financial institutions (PFIs), which in turn will help 30,000 CMSEs operated by the beneficiaries.
The project will create at least 45,000 employment opportunities by December 2025. It has targeted to disburse 20 percent of the funds to microbusiness led by women to support their recovery as they have limited access to finance and have severely been affected by the pandemic due to their high concentration in retail, travel, and hospitality sectors.
ADB will provide an additional $900,000 technical assistance grant from its Technical Assistance Special Fund for Bangladesh Bank and participating financial institutions to help them strengthen their risk management capacities, business process, and information systems.
The assistance will also boost their support of CMSEs by incorporating mobile finance, value chain financing, and sustainable financing tackling climate change.
READ: ADB approves $150 million loan to Bangladesh to help recovery of Covid-hit enterprises
This project builds on the $250 million policy-based Strengthening Social Resilience Program, approved by ADB in June 2021, to strengthen Bangladesh’s social protection programs and resilience of vulnerable groups.
It also complements the $50 million additional financing to the ongoing Microenterprise Development Project, approved in December 2020, to help restore economic activities of microenterprises affected by COVID-19 in the country.
“The assistance will support Government’s efforts to accelerate socioeconomic recovery from the COVID-19 pandemic,” ERD secretary Fatima Yasmin said.
ADB country director Edimon Ginting said that the project will reinforce ADB’s long-standing support to Bangladesh in financial inclusion and address key barriers for financing CMSEs by developing a comprehensive action plan that will tackle sector-wide challenges, promote best practices at the banks, and expand training and business development support to the borrowers said Country Director.
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“The project will also balance the affordability and availability of loans in addition to adopting innovative approaches so that lower loan interest rates do not disincentivise banks’ lending to CMSEs,” he added.