Bangladesh on Friday signed loan agreements worth $1.3 billion with the Asian Development Bank (ADB) to finance four major development projects focusing on climate resilience, renewable energy, transport infrastructure and reforms in the banking sector.
The agreements were signed between the Economic Relations Division (ERD) and ADB at a ceremony held at ERD in the capital.
Md. Shahriar Kader Siddiky, Secretary of ERD, and Hoe Yun Jeong, Country Director of ADB, signed the documents on behalf of the government of Bangladesh and ADB respectively.
“These agreements mark a significant step forward in our efforts to strengthen climate resilience, boost infrastructure, promote clean energy and ensure financial stability,” said ERD Secretary Md. Shahriar Kader Siddiky.
ADB approves $500 mln loan for Bangladesh banking sector reform
“The support from ADB will help us advance inclusive and sustainable development in line with our national priorities,” he said.
The projects are:
# $400 million for the Climate-Resilient Inclusive Development Programme (CRIDP): The programme aims to enhance climate resilience, reduce emissions, and promote inclusive growth. It includes co-financing of nearly $113 million from Agence Française de Développement and $400 million from the Asian Infrastructure Investment Bank. CRIDP will establish the Bangladesh Climate Development Partnership, enhance disaster risk financing, promote gender-responsive local adaptation, and support renewable energy and transport master plans.
# $200 million for the Power Transmission Strengthening and Integration of Renewable Energy Project: This initiative will upgrade power transmission infrastructure in rural districts including Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira. It will also support the integration of renewable energy in the southern Chattogram region, aiming to ensure reliable and inclusive access to electricity and create employment opportunities.
# $204 million under the SASEC Dhaka–Northwest Corridor Road Project (Tranche 4): The funding will support the expansion and modernisation of a 190-kilometre section from Elenga to Rangpur. The project is aimed at improving regional connectivity with Bhutan, India, and Nepal. It includes climate-resilient design elements and gender-responsive features such as footbridges and dedicated lanes for non-motorised transport.
# $500 million for the Stabilising and Reforming the Banking Sector Programme: This reform-focused programme will strengthen regulatory oversight, improve the quality of financial assets, and promote financial inclusion. It will enhance the capacity of Bangladesh Bank and address challenges related to non-performing loans.
ADB reaffirms robust support for Bangladesh’s reform drive, sustainable development
ADB Country Director Hoe Yun Jeong said the comprehensive support package will contribute significantly to Bangladesh’s long-term resilience and inclusive development goals.