The Asian Development Bank (ADB) and the government of Bangladesh signed a $600 million policy-based loan (PBL) agreement on Wednesday, aiming to promote structural reforms supporting domestic resource mobilisation and improving the efficiency of public investment projects. The agreement also focuses on developing the private sector, reforming state-owned enterprises and boosting transparency and good governance. Secretary of the Economic Relations Division (ERD) Md Shahriar Kader Siddiky and Deputy Country Director of the Asian Development Bank (ADB) Jiangbo Ning signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony at ERD in the capital. ADB approves $600 million loan for Bangladesh “The $600 million assistance under the Strengthening Economic Management and Governance Programme (Subprogram 1) supports the government in addressing structural weaknesses in mobilising domestic resources, enabling investment climate, facilitating trade and logistics, and promoting transparency and good governance,” said Deputy Country Director Jiangbo Ning. He said that the reforms under the program aim to increase income tax revenue by 25%, and value-added tax (VAT) by 30%, while reducing development project cost overruns by 30%, and cutting average time overruns for completed projects to 18 months, by March 2027. The Strengthening Economic Management and Governance Programme aims to sequentially implement complex reforms focusing on strengthening fiscal management, improving state-owned enterprises’ (SOE) governance and investment climate, and boosting trade policy and logistics. The overall programme also includes subprogram 2, scheduled for 2026, with another $600 million. ADB pledges $24.3 million to finance establishment of solar power plant in M'singh The subprogram 1 supports the government in initiating tax expenditure rationalization, tax administration automation and digitalisation, data transparency, public investment management (PIM) system improvement, SOE governance and fiscal risk monitoring, strengthening regulatory environment streamlining, and trade facilitation. The subprogram 2 envisages to further deepen the reforms initiated under subprogram 1. In addition, the PBL aims to facilitate policy and institutional reforms to promote a “whole of government” logistics sector reform to reduce the cost of trade and promote export diversification.  

The Asian Development Bank (ADB) has approved a $100 million loan in additional financing to support critical infrastructure development through public–private partnerships (PPP) in Bangladesh.  “This project will enable Bangladesh to catalyse private sector financing, reduce pressure on public finance to address infrastructure development deficits, and create more employment,” said ADB Country Director for Bangladesh Hoe Yun Jeong on Monday. Abdul Hakim appointed as BPC Chairman “The loan will enhance the financial and institutional capacity of the Bangladesh Infrastructure Finance Fund Limited (BIFFL) to deliver its mandate of fostering an environment that supports sustainable private investments through the mobilisation of PPP, with a strong focus on gender and climate change.” Bangladesh is undergoing a transformative phase, driven by economic shifts and recent political transition and the country's infrastructure development, primarily driven by the public sector, faces challenges due to limited resources and implementation constraints, it said. The ADB loan aims to address this gap by providing long-term financing to BIFFL, facilitating the completion of critical infrastructure projects that will foster economic growth. Victims demand justice for abduction, torture by 'ex- RAB commander Faruqi' The Strengthening the Bangladesh Infrastructure Finance Fund Limited Project – Additional Financing will strengthen BIFFL’s capacity to crowd in private sector financing and facilitate new technologies brought by international sponsors and foreign direct investors. With ADB’s support, BIFFL will establish gender screening of subprojects and develop a gender equality and social inclusion strategy.

The Asian Development Bank (ADB) Board of Governors has unanimously elected Masato Kanda as ADB’s 11th President, the Manila-based lender said on Thursday. Kanda, 59, currently serves as Special Advisor to Japan’s Prime Minister and Minister of Finance. He will assume office on 24 February 2025, succeeding Masatsugu Asakawa, who will leave office on 23 February 2025, according to a press release. Kanda will complete the unexpired term of President Asakawa, which ends on 23 November 2026. “Kanda’s extensive experience in international finance and proven leadership in multilateral settings will serve ADB well in navigating complex global economic challenges and fostering international cooperation,” said Chair of the ADB Board of Governors and Governor of the Bank of Italy Fabio Panetta. “The ADB Board of Governors looks forward to working with Kanda.” With nearly 4 decades of experience, Kanda has held key leadership roles at the Ministry of Finance of Japan, including Vice-Minister of Finance for International Affairs. He has extensive experience in financial sector policy and macro-fiscal policy, having served as Deputy Commissioner at the Financial Services Agency, Deputy Director-General of the Budget Bureau, and Deputy Vice-Minister for Policy Planning and Coordination. He is also a leading expert in education and science policy as well as university reform.        Kanda has been actively engaged in the G7, G20, and other international forums, addressing key policy challenges such as multilateral development bank (MDB) evolution, pandemic prevention, preparedness and response, and debt sustainability and transparency. During his tenure as Vice-Minister of Finance for International Affairs, Japan made a record contribution of more than $1 billion to the Asian Development Fund 13th replenishment. Since 2016, Kanda has served as Chair of the OECD Corporate Governance Committee, overseeing the review of the G20/OECD Principles of Corporate Governance in 2023. ILO to launch new report highlighting wage trends, inequality today He also has substantial experience in strategic discussions and decision-making at MDBs, having served as Alternate Executive Director for Japan at the World Bank. Kanda obtained his Bachelor of Laws from the University of Tokyo in 1987 and M.Phil in Economics from Oxford University in 1991.  

Though two separate deals were signed with the World Bank and the Asian Development Bank about a year ago to install some 17.5 lakh (1.75 million) smart pre-paid metres, the Titas Gas Transmission and Distribution Company has made little progress in implementing the project. “Only some individual consultants were appointed by Titas Gas PLC. No project management consultant (PMC) has been appointed as yet,” said a senior official of the Energy and Mineral Resources Division. Explaining the significance of the PMC he said has it critical role in implementing a project as it holds the responsibility to plan and design the project. “The main technical aspects remain in the hand of the PMC. Normally one or two foreign companies are appointed as PMC”, he told UNB. Newly appointed Managing Director of the Titas PLC Shahnewaz Parvez also admitted the poor progress of the smart prepaid metre project. He, however, said that the appointment of PMC is under process and hoped that the Titas will be able to appoint the consultant soon. Official sources said Titas Gas signed two separate loan agreements in November last year with the World Bank and ADB to install a total of 17.5 lakh prepaid meters under two projects. On November 23 in 2023, Titas signed a loan agreement with the World Bank for installation of 11 lakh smart prepaid meters under the Gas Sector Efficiency and Carbon Abatement Project. The gas transmission and distribution company also signed another agreement with the Asian Development Bank on November 28 in 2023 for the installation of 6.50 lakh smart prepaid meters under the Smart Metering Energy Efficiency Improvement Project. Read: JS body recommends taking steps to gain prepaid meter consumers’ trust The government had undertaken the smart prepaid metre project for the Titas Gas PLC, to reduce the excessive system loss to a reasonable level. As the oldest and largest gas distribution both in terms of its operational area and volume of natural gas sales among the six gas distribution companies, the Titas Gas has been reeling with 7 percent system loss. Titas Gas officials said the company has to incur a loss of Tk 150-180 crore per month for its system loss. They said the entity can save Tk1,800-2,160 crore a year if such a huge system loss is checked. Titas Gas has so far installed about 3.5 lakh of prepaid gas meters for its household consumers mainly in Dhaka city with the financial support of the Japanese donor agency JICA. Its prepaid meters were installed mainly in Gulshan, Banani, Mohammadpur, Paltan, Ramna, New Market, Khilgaon and Segunbagicha areas. Titas Gas currently supplies gas to over 2.878 million consumers, including some 2.853 million household consumers, 12,078 commercial consumers, 5,429 industrial consumers, 1,755 captive power plants, and 396 CNG stations. As per the official statistics, Titas Gas alone holds 55% of the gas market share, while the other five companies have 45%. Read more: Electricity bills harassments: Postpaid consumers can turn to prepaid meters Its vast operational area covers Dhaka, Manikganj, Gazipur, Narayanganj, Munshiganj, Narsingdi, and Mymensingh. It annually sells about 14,459.41 MMCM (million cubic meters) of gas (2021-23 fiscal years), to earn a revenue of Tk26,387.12 crore.

Asian Development Bank (ADB) Vice President Yingming Yang has said he is encouraged to see Bangladesh’s advanced preparation for the post-LDC graduation era, including adequately dealing with the financing and market access challenges that will also be outlined in the next five-year plan. “I have noticed a strong drive for meaningful reforms to address medium-term economic and development challenges,” he told UNB in an exclusive interview on Thursday before wrapping up his Bangladesh visit. The vice-president who is responsible for the management of the operations of ADB’s Central and West Asia Department and South Asia Department, said the sincerity of the government in building resilience to climate change, which will help mitigate macroeconomic and fiscal risks, is laudable. Revenue-based fiscal consolidation, quality infrastructure and human capital development, diversification of trade, increasing foreign direct investment, lowering financial sector vulnerabilities along with the reduction of non-performing loans, enhancing investment climate, and strengthening governance are widely discussed and prioritised, Yang said.

The number of people aged 60 and above in developing Asia and the Pacific is set to nearly double by 2050 to 1.2 billion—or about a quarter of the total population—significantly increasing the need for pension and welfare programs as well as healthcare services, said a new report on Thursday (May 02, 2024). At the same time, economies have an opportunity to reap a “silver dividend” in the form of additional productivity from older people, which could boost gross domestic product in the region by 0.9% on average, said the Asian Development Bank (ADB). “Asia and the Pacific’s rapid development is a success story, but it’s also fueling a huge demographic shift, and the pressure is rising,” said ADB Chief Economist Albert Park.  “Governments need to prepare now if they’re going to be able to help hundreds of millions of people in the region age well. Policies should support lifetime investment in health, education, skills, and financial preparedness for retirement. Family and social ties are also important to foster healthy and productive populations of older people and maximize their contribution to society.” Developing Asia and the Pacific is unprepared to secure the well-being of its rapidly aging population as the growing share of older people in the region face challenges from low pension coverage to health problems, social isolation, and limited access to essential services, according to the multilateral development bank. ADB, WTO strengthen collaboration for sustainable economic growth in Asia-Pacific region While longer lifespans reflect the region’s development success, comprehensive policy reforms are urgently needed to support the welfare of older people, according to “Aging Well in Asia: Asian Development Policy Report,” released on Thursday by the Asian Development Bank (ADB) at its 57th Annual Meeting. According to the report, 40% of people over age 60 in Asia and the Pacific lack access to any form of pension—with women disproportionately affected, as they are more likely to do unpaid domestic work.  As a result, many older people in the region have no choice but to work well beyond retirement age to survive.  Among those still working at age 65 or older, 94% work in the informal sector, which typically doesn’t provide basic labor protections or pension benefits. Physical and mental health challenges also increase with age.  FBCCI urges govt policy to facilitate backward linkage industries Around 60% of older people in Asia and the Pacific do not attend or receive regular health checks, while 31% report depressive symptoms owing to illness, social isolation, and economic insecurity.  Older women in the region are also more likely than older men to suffer from ill health, from depression to diabetes and hypertension.  The report recommended a wide range of policy measures to support healthy and economically secure aging.  Among these are government-assisted health insurance and pension plans, improved health infrastructure, and free annual check-ups and lifestyle evaluations.  Policy makers should aim for universal healthcare coverage, while basic labor protections should be extended to older informal workers, according to the report. By making mandatory retirement ages more flexible, helping older people stay healthy, and providing them with suitable work opportunities as well as lifelong learning and skills development, economies in the region can help older people stay productive longer. Read more: Developing Asian economies’ growth expected to be sustained at 4.9% this year and the next, ADB President says ahead of Annual Meeting

The Asian Development Bank (ADB) has signed a $121.55 million financing package with Dynamic Sun Energy Private Limited to build and operate a 100-megawatt (MW) grid-connected solar photovoltaic power plant in Pabna, Bangladesh.  The plant is the country’s first private sector utility-scale solar facility to secure support from global financiers, said the Manilla-based lending agency on Monday (April 29, 2024).  ADB arranged, structured, and syndicated the debt package as the sole mandated lead arranger and bookrunner.  The financing package comprises a $46.75 million loan from ADB, a syndicated B-loan of $28.05 million from ILX Fund I, an Amsterdam-based emerging market private credit fund focused on supporting the Sustainable Development Goals with ADB as lender of record, and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency.  Competition policy can unlock increased FDI flows into Bangladesh: ADB Country Director to MCCI “As Asia’s climate bank, ADB welcomes the opportunity to support renewable energy in Bangladesh, where obtaining long-term financing for such projects is a challenge,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “This partnership exemplifies our lead role in mobilising financing for clean energy facilities and stimulating further investment in sectors where it’s needed the most.” The solar power plant will generate 193.5 gigawatt-hours of electricity annually and avoid 93,654 tons of carbon dioxide emissions annually. “We are delighted to secure financing for one of the largest private sector solar projects in Bangladesh to date, with the support of international lenders led by ADB,” said PT Managing Director Shakhawat Hossain.  “Partnering with an internationally reputable financial institution such as ADB affirms PT’s dedication to sustainability and marks a significant stride in our journey towards sustainable growth.” Banks tailoring offshore services with lucrative benefits aimed at wealthy NRBs DSE is owned by Paramount Textile PLC (PT), one of the largest woven textile manufacturers in Bangladesh, which also operates several power plants.  PT manufactures high-quality yarn-dyed and printed woven fabrics using a wide range of yarns, modern weaving technologies, and print types.  PT was publicly listed on the Dhaka and Chittagong stock exchanges in 2013. 

Bangladesh is preparing to introduce remote sensing and drones to detect crop damage caused by extreme weather events or diseases, said the Asian Development Bank (ADB). Around 20 officers of the Department of Agricultural Extension (DAE) are initially receiving training to learn how to use the state-of-the-art technologies. Malay Choudhury, Additional Secretary, Ministry of Agriculture, and Edimon Ginting, ADB Country Director for Bangladesh inaugurated a workshop titled “The Use of Drone and Satellite Image for Crop Monitoring and Crop Damage Assessment” in Dhaka on Tuesday to initiate a seven-day training programme. ADB forecasts Bangladesh's GDP growth at 6.1% in FY 2023-24, anticipates rise to 6.6% next year DAE and ADB jointly designed the training programme that will continue till April 25 April, according to ADB. Renowned geospatial experts from the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) will conduct the training. The trainees will receive four days of classroom training on geographical information systems (GIS) and remote sensing analysis for crop damage detection and participate in a three-day field trip to Sylhet to learn how to collect ground data using mobile devices. Local DAE officials are expected to participate in the training in Sylhet, where the 2022 floods caused major crop damage. ADB to increase cooperation in Bangladesh climate actions: Environment Minister Proper assessment of crop diseases and losses are critical to take appropriate measures to ensure agricultural productivity and food security in the context of growing threats of climate change in Bangladesh, said Country Director Edimon Ginting. “ADB will continue to bring in innovative solutions including advanced technologies to help Bangladesh tackle climate impacts,” Ginting added. With advanced geospatial technology, our officers will be able to assess crop damage and provide effective government programs to mitigate the expected damage caused by climate change in the future, said Badal Chandra Biswas, Director General, DAE. PM Hasina seeks more support from ADB for socioeconomic uplift Following the training program, ADB and DAE plan to produce joint reports on crop damage assessment in the Sylhet region, conduct a project evaluation study of an ADB-supported integrated water management project in Gopalganj areas, and implement a nationwide climate disaster assessment in a small local government unit. Japan Fund for Prosperous and Resilient Asia and the Pacific financed by the Government of Japan provided the grant fund for the training program through the Asian Development Bank.

State Minister for Power, Energy and Minerals Resources Nasrul Hamid has sought the help of Asian Development Bank (ADB) to create a regional power market. “ADB can help create a marketplace in the region so that countries can trade electricity as per their necessity”, he told Takeo Konishi, the South Asia Director General of the ADB when he called on the state minister at his office in the ministry on Monday. Under the arrangement, countries can export electricity to Nepal and Bhutan during the winter season, he said. UCB taking steps to offer easy loans to agricultural entrepreneurs During the meeting they discussed various issues related to mutual interest. Welcoming the ADB Director General Nasrul Hamid said that the number of ADB-funded projects should be increased. He said Bangladesh has a plan to import 9000 MW of power. “We need a good consultant to advise us to set the actual price of energy in this regard and ADB can help us address this issue”, he said. Finance Minister affirms Bangladesh's economic resilience amid challenges The state minister noted that the government is giving importance to the participation of individuals and private organisations in optimising the use of resources beside the participation of the government. He noted that bonds are being issued to reduce the subsidy in the power sector. The government has taken initiative to convert some 13 lakh diesel-run pumps into solar pumps. He said that it will yield good results if they can work simultaneously for technological development and building a common computer data centre. ICMAB delegation takes part in pre-budget discussion with NBR The ADB director general discussed the issue of increasing private sector participation in the energy transition, electric vehicle, energy infrastructure and solar energy roadmaps for financing, regional interconnection and project readiness. It is notable that ADB has financed $2.57 billion in 7 projects in the power sector. In 2023, ADB approved two projects worth $360 million while 3 projects are under implementation and 5 remain as request for proposal in the energy sector. At this time, Asian Development Bank Country Director Ed Ginting (Edemon Ginting) was present.

The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday (November 28, 2023) signed a $100 million loan agreement to improve computer science, software engineering, and information technology (IT) programs in three universities in Bangladesh. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Edimon Ginting, Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony at ERD in Dhaka. “This project will help accelerate fourth industrial revolution technology adoption, realize the vision of Digital Bangladesh, and enable the country to reap the demographic dividend by creating digitally qualified young human resources and entrepreneurs,” said ADB Country Director Edimon Ginting. “This new initiative builds on ADB’s ongoing skills development support through industry partnerships to increase competitiveness and foster innovation,” he said. Read: ADB to provide $200 million to promote energy efficiency, transition in Bangladesh The Improving Computer and Software Engineering Tertiary Education Project will upgrade the computer science and engineering, software engineering, and information technology degree programs of the leading public universities in Bangladesh. The universities receiving the funding are: Bangladesh University of Engineering and Technology (BUET), University of Dhaka (DU), and Jashore University of Science and Technology. These programs will adopt blended learning techniques and integrate the latest technologies such as artificial intelligence, robotics, and internet of things. These programs will seek international accreditation to ensure that students get updated curricula that adhere to international standards. Read: ADB to lend $336.5 million to Bangladesh to help develop vaccine production ADB will support the establishment of modern classrooms and laboratories, collaboration and start-up spaces, and auxiliary facilities in the three universities. These facilities will incorporate climate- and disaster-resilient designs, energy- and water-saving features, and will include women-friendly amenities and services. The universities will develop capacities of teachers to be proficient in new instructional approaches and emerging digital technologies. The students and teachers from the three and other universities will also work with industry partners to come up with innovative solutions through joint research and development. Mandatory internship opportunities, career counseling, and industry placement will be provided to undergraduate students, particularly for women. Read: ADB provides $90 million for clean water, sanitation services in the Hill Tracts