The Asian Development Bank (ADB) will provide a $100 million loan to Palli Karma-Sahayak Foundation (PKSF) to expand access to safe, affordable and disaster-resilient housing for around 40,000 low- and middle-income families in Bangladesh.

The financing will be provided under the Inclusive Affordable Housing Finance Project, which will be implemented until 2031, with particular focus on strengthening housing security for women and people living in disaster-prone areas.

A loan agreement between the government and ADB and a project agreement between PKSF and ADB were signed at a hotel in Dhaka on Wednesday, according to a press release.

Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) under the Ministry of Finance, signed the loan agreement on behalf of the government, while Dr AKM Nuruzzaman, Senior General Manager of PKSF, signed the project agreement on behalf of PKSF.

Qingfeng Zhang, Country Director of the ADB Bangladesh Resident Mission, signed both agreements on behalf of ADB.

The loan proceeds will finance the construction of new houses as well as the repair and upgrading of existing homes.

The project will seek to expand housing finance opportunities for low- and middle-income households that have limited access to housing loans through the formal banking system.

A major focus of the project will be the development of houses capable of withstanding floods, cyclones, extreme heat and other natural hazards and climate-related risks.

Disaster and climate vulnerabilities will be incorporated into housing design, construction and safety measures under the project.

This is expected to help vulnerable families secure safer homes while reducing risks to their lives and assets during disasters.

The project will combine affordable housing finance with climate-resilient housing measures to improve the long-term resilience of vulnerable households and increase their access to safer and more sustainable housing.