The Asian Development Bank (ADB) has pledged $2.57 billion in new sovereign financing to Bangladesh in 2025, more than doubling its 2024 commitment of $1.18 billion.
The programme will focus on priority investments in energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises (SMEs) and improving livelihoods and services in Cox's Bazar, according to an ADB press release.
ADB Country Director Hoe Yun Jeong reaffirmed the bank’s support for Bangladesh during this critical transition period amid a challenging global landscape.
“Our 2025 commitments underscore our enduring partnership with Bangladesh and our shared focus, in close collaboration with the Economic Relations Division and other government ministries, on economic diversification, enhanced infrastructure and services, and human development,” he said.
Of the $2.57 billion committed for 10 projects, about 35% will support transport infrastructure, 23% finance, and 16% public sector management and governance.
Energy initiatives account for 11%, water and urban development 9%, and human and social development 6%.
Key projects include the $688 million South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project to upgrade a crucial rail line and enable direct train services from Dhaka to Cox's Bazar; $500 million Stabilising and Reforming the Banking Sector Programme, and $400 million Climate-Resilient Inclusive Development Programme and promote inclusive growth.
ADB also provided non-sovereign support to the private sector, covering textiles, renewable energy, trade finance, food security, microfinance, and public-private partnerships.
Collaborative efforts with other development partners mobilized $720 million in cofinancing and provided policy guidance on foreign investment, inclusive development, and public debt management, it added.
Bangladesh, ADB ink $688m loan deals to upgrade Ctg-Dohazari railway
As of December 31, 2025, ADB’s cumulative sovereign and non-sovereign loans to Bangladesh surpassed $42 billion, with an active sovereign portfolio of 48 projects worth $10.8 billion.
ADB plans to support Bangladesh in 2026 by developing economic corridors, strengthening multimodal logistics, advancing public sector reforms, promoting private sector growth, capital market development, and accelerating digital transformation.