United News of Bangladesh

The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan facility agreement with Envoy Textiles Limited, marking ADB’s first such loan in Bangladesh. The financing will support the design and construction of a new automated, energy-efficient spinning unit at Envoy’s manufacturing plant in Jamirdia, Mymensingh, boosting the company’s annual yarn production capacity by 4,550 tons. The loan will also finance the installation of 3.5 MWp rooftop solar panels and refinance short-term local working capital loans. Sustainability-linked loans are performance-based debt instruments tied to predefined key performance indicators, assessed against sustainability performance targets. For Envoy, these include rooftop solar generation capacity and greenhouse gas emission reductions. ADB Country Director for Bangladesh Hoe Yun Jeong said that the ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80% of the country’s total export earnings, and Envoy is the leading denim fabric manufacturer. ADB projects 4% growth for Bangladesh in FY2025, 5% in FY2026 “ADB is pleased to support Envoy with its first sustainability-linked loan in Bangladesh. This partnership advances environmental sustainability and industrial modernization, setting a new standard for the garment sector,” he said. Envoy Chairman Kutubuddin Ahmed said that This new loan will enable us to expand our production capacity, invest in renewable energy, and further reduce our environmental footprint. Envoy Textiles is the world’s first denim manufacturer with a platinum Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council. The company produces 54 million yards of denim annually—about 10% of Bangladesh’s total capacity.  

The Asian Development Bank (ADB) and Bangladesh on Sunday signed a $150 million loan agreement to improve technical and vocational education and training (TVET), aiming to enhance access to decent employment and boost the country’s global market competitiveness. Economic Relations Division (ERD) secretary Md. Shahriar Kader Siddiky and Country Director Hoe Yun Jeong signed the loan agreement on behalf of Bangladesh and ADB respectively at a ceremony at ERD in Dhaka.  ADB okays $58.6 mln grant, $28.1 mln loan for Rohingyas, host communities The results-based assistance for the Technical and Vocational Education and Training (TVET) Teachers for the Future Program will expand access to modern teacher training—especially in underserved regions outside Dhaka; improve the pedagogical and technical skills of educators in emerging technologies; and strengthen systems for teacher development, management, and reporting. Under the programme, at least 10,000 new and existing TVET teachers will have enhanced their capacities, positively impacting over 250,000 students. The programme will also establish a nationwide system for continuous professional development to ensure the sustained quality and relevance of TVET in Bangladesh. ADB Country Director Hoe Yun Jeong said that aligned with the country’s economic diversification priorities, the programme targets five key technology clusters: mechanical, electronics and electrical, information and communication technology, civil, and food and agriculture. “It supports Bangladesh’s priority agenda of job creation, addresses non-income dimensions of poverty and social exclusion, and enhances access to decent employment and competitiveness in the global market, aligned with the government’s Integrated TVET Development Action Plan (ITDAP),” he said.

In a significant step towards bolstering food security and supporting millions of smallholder farmers, the Asian Development Bank (ADB), in partnership with the Consortium of International Agricultural Research Centres (CGIAR) and with support from the Bill & Melinda Gates Foundation, has launched a major initiative aimed at transforming rice production across Asia and the Pacific. Rice, the staple diet for over half of the region’s population, is also a vital source of income for rural communities.  But, the sector faces serious threats from declining productivity, water scarcity, and its considerable carbon footprint.  Experts have warned that, without swift intervention, these issues could jeopardise food security and rural livelihoods. “Rice is essential to food security in Asia, supplying over a quarter of the region’s calorie intake—and as much as half in Southeast Asia,” said ADB Vice-President for Sectors and Themes, Fatima Yasmin.  “For hundreds of millions of smallholder farmers, rice is not just food—it is their livelihood. That livelihood is increasingly at risk due to climate change and environmental degradation," she said.  The newly launched initiative, anchored by the ADB–CGIAR Clearinghouse Facility and co-financed by the Gates Foundation, will promote the adoption of resilient, high-yield, and low-emission rice farming practices.  It will also support sustainable water use, inclusive value chains, and improved nutrition outcomes, particularly targeting vulnerable communities. ADB has committed to investing up to $1.5 billion from 2025 to 2030 under this programme. This investment forms part of ADB’s broader pledge of $40 billion to transform food systems across the region by 2030, as announced earlier in May. This joint initiative will reinforce CGIAR’s strategic collaboration with ADB and scale up CGIAR’s innovations in rice   with partners like ADB and the Gates Foundation, we aim to drive sustainable and resilient transformation of Asia’s rice sector and positively impact millions of smallholder farmers. Bangladesh has been included among the countries selected for initial project development, alongside Cambodia, the People’s Republic of China, Pakistan, and the Philippines. Founded in 1966, ADB is one of the leading multilateral development banks, comprising 69 member countries, including 50 from the Asia-Pacific region.  The bank continues to drive inclusive, resilient, and sustainable growth through strategic partnerships and innovative financial solutions.  

The Asian Development Bank (ADB) has reaffirmed its enduring partnership with Bangladesh, pledging continued support for the country’s reform-oriented development agenda and sustainable growth trajectory, particularly as it prepares for graduation from Least Developed Country (LDC) status. The assurance came during a high-level bilateral meeting between Bangladesh’s Finance Adviser Dr Salehuddin Ahmed and ADB President Masato Kanda, held on the sidelines of the 58th Annual Meeting of the ADB, according to a message received here on Thursday. During the discussion, Dr Salehuddin Ahmed expressed Bangladesh’s deep appreciation for ADB’s consistent support over the decades, noting the breadth of collaboration spanning infrastructure, energy, education, health, and climate resilience. He underscored that ADB’s cumulative portfolio in Bangladesh has now reached USD 32.5 billion, with commitments of USD 2.94 billion in the 2023–24 fiscal year alone, a testament to the depth of the development partnership. As Bangladesh advances toward LDC graduation, Dr Ahmed emphasised the importance of adapting development cooperation to the nation’s evolving needs. He described this juncture as a pivotal moment—not only in economic terms but also politically—highlighting the emergence of a historic student-led movement and a reform-mandated government driving transformational change. The Bank of England is expected to cut interest rates in the face of US tariffs threat In this context, he called upon ADB to align its assistance with Bangladesh’s ambitious reform priorities, focusing particularly on governance, transparency, and efficient public service delivery. Looking to the future, Dr Ahmed proposed deeper ADB engagement in strategic areas such as integrated river management and the formulation of a Blue Economy Master Plan. He further emphasised the need for investment in digital transformation of the health sector, modernisation of tax administration, and education reforms to build a future-ready workforce. The Bank of England is expected to cut interest rates in the face of US tariffs threat He also drew attention to the pressing need for sustainable urban development, calling for ADB’s assistance in building smart, climate-resilient cities, improving municipal services, and supporting regional urban infrastructure. On the energy front, Bangladesh is seeking ADB’s backing to scale up renewable energy generation and enhance regional energy trade. “Enhanced concessional support from ADB is not only vital for sustaining Bangladesh’s development momentum, but also a strategic investment in regional stability, effective climate action, and inclusive growth,” said Dr Ahmed, urging the Bank to recalibrate its concessional financing mechanisms in line with the unique challenges facing economies in transition. In response, ADB President Mr Masato Kanda lauded Bangladesh’s economic resilience and progress, reiterating the Bank’s historical commitment to the country. Weak grid investment slows Asia-Pacific energy transition: ADB He acknowledged the significance of the issues raised by the Bangladesh delegation, assuring that these would receive due consideration. “ADB has always placed special importance on Bangladesh and will continue to support its journey towards social and economic security,” Kanda said.    

The Asian Development Bank (ADB) on Sunday announced plans to expand its support to long-term food and nutrition security in Asia and the Pacific by $26 billion, bringing its total funding for food security initiatives to $40 billion over 2022–2030. The assistance will fund a comprehensive program spanning the entire food production process—from farming and processing—to distribution and consumption. Through financing and policy support for governments and companies, the program aims to help Asia and the Pacific generate diverse and nutritious food, create jobs, reduce environmental impacts, and promote resilient agricultural supply chains, according to a press release.   “Unprecedented droughts, floods, extreme heat, and degraded natural resources are undermining agricultural production, while at the same time threatening food security and rural livelihoods,” said ADB President Masato Kanda at ADB’s 58th Annual Meeting in Milan. He said that  expanded support will help countries alleviate hunger, improve diets, and protect the natural environment, while providing opportunities for farmers and agribusinesses. “It will drive change across the entire food value chain, from how food is grown and processed to how it is distributed and consumed.” The new ambition builds on ADB’s September 2022 pledge to invest $14 billion by 2025 to improve food security and ease the regional food crisis. By the end of 2024, ADB had committed  $11 billion—about 80% of the original allocation—with an additional $3.3 billion in investments programed for 2025. TikTok fined $600 million for China data transfers that broke EU privacy rules The $26 billion in additional funding announced today will consist of $18.5 billion in direct ADB support for governments and $7.5 billion in private sector investments. By 2030, ADB aims for private sector investments to account for more than 27% of the total $40 billion program—underscoring the critical role of the private sector in driving food systems transformation. More than half of the world’s undernourished people live in developing Asia. Biodiversity loss and malnutrition are straining food systems, which account for 70% of global water use, 50% of habitable land, and 80% of biodiversity loss. Food systems also employ 40% of the region’s workforce. To support food systems transformation, the program will modernize agricultural value chains to improve access to affordable and healthy food for vulnerable populations. It will also invest in improving soil quality and conserving biodiversity-essential elements for productive agriculture that are increasingly under threat from climate change, pollution, and the loss of land and aquatic ecosystems. The program will support the development of digital technology and analytics to improve decision-making for farmers, agribusinesses, and policymakers. ADB is establishing the Natural Capital Fund—a planned $150 million blended finance vehicle—with anchor support from the Global Environment Facility and contributions expected from other partners including the Global Agriculture and Food Security Program. This fund will support agri-food system projects by farmers and innovators that protect, restore, and manage natural capital sustainably across ADB’s developing members.

A coalition of private watchdog groups has revealed that approximately 65% of the Asian Development Bank’s (ADB) energy investments in Bangladesh—totaling $11.36 billion—lack any safeguard classification, raising serious concerns over transparency and accountability. The revelation came during a press conference titled “Unpacking the Risks in ADB’s Investments in Bangladesh,” held at Banglamotor in the capital. The event was jointly organised by the NGO Forum on ADB and the Coastal Livelihood and Environmental Action Network (CLEAN), ahead of the ADB’s 58th Annual General Meeting. Speakers at the event accused the multilateral lender of deepening Bangladesh’s energy and environmental crises by adhering to a one-sided investment model that heavily prioritizes fossil fuels over renewable alternatives. Hasan Mehedi, Chief Executive of CLEAN; Rayyan Hassan, Executive Director of the NGO Forum on ADB; and Sharmin Bristy, Fossil Fuel Campaigner at the NGO Forum on ADB, spoke at the event. They said that the ADB has so far invested around $17.34 billion in Bangladesh’s energy sector, with the vast majority funneled into fossil fuel-based projects. According to their analysis, the ADB has supported 106 energy projects in Bangladesh since 1973, many of which focus on fossil fuel-based power generation, oil and gas distribution, and related transmission infrastructure. Of these, 67 projects worth $9.84 billion have already been closed—raising concerns over the bank’s planning, sustainability, and long-term strategy. “Only 7.95% of total project funds were allocated to high-risk environmental considerations, while a mere 0.35%—around $60.58 million—was designated for resettlement and community safeguards,” said Sharmin Bristy. “These figures cast serious doubt on ADB’s commitment to sustainable development.” Prof Yunus introduces Bangladeshi female athletes at Earthna Summit Rayyan highlighted the stark funding disparity between fossil fuel and renewable energy projects. Of the $4.88 billion ADB has invested in electricity generation in Bangladesh, 82.9% went to fossil fuel-based initiatives. In contrast, only 2.55% was allocated to solar energy—and not a single dollar to wind power. “The cost per megawatt also reveals a troubling trend,” he added. “Fossil fuel projects receive $2.04 million per MW, while solar receives only $0.51 million.” Hasan Mehedi criticised ADB’s investment in a 165-kilometer gas pipeline from Bheramara to Khulna, despite knowing Bangladesh lacks sufficient gas reserves. He said the ADB went on to finance two gas-based power plants in Khulna—one of 225 MW capacity and another of 800 MW—which have remained idle due to gas shortages. “These projects are now burdens on the people. As a multilateral development bank, ADB should not fund such unsustainable initiatives,” he said. Mehedi emphasised that Bangladesh, being on the frontlines of the climate crisis, needs support for renewable solutions—not fossil fuel dependency. “ADB must urgently change its energy policy and commit to a full transition to renewables,” he added. The NGO Forum on ADB and CLEAN concluded the event by outlining three core demands to the ADB including ending all fossil fuel financing and supporting a just energy transition, Implementing robust safeguards, including Free, Prior, and Informed Consent (FPIC), and upholding human rights. Rejecting carbon markets, green washing practices, and corporate-led pseudo climate solutions were among other demands.

Although the Asian Development Bank has projected a moderate 5.1 percent GDP growth Bangladesh for 2025-26 fiscal, the forecast may need to be revised downwards due to the recent imposition of higher tariffs on Bangladeshi exports to the US, said Hoe Yun Jeong, Country Director of the ADB’s Resident Mission in Bangladesh “Our projection was done before the US sweeping tariff. So our projection was 5.1 percent for the fiscal year 2026. Obviously it will adversary affect the overall Bangladesh export to  the US and also on the overall economic progress. That 5.1 percent needed to be downgraded little bit.” Hoe Yun Jeong said on Wednesday. He said these responding to questions from the reporters after releasing the ADB’s flagship publication Asian Development Outlook (ADO) April 2025 held at the ADB office in Dhaka. In its latest report, the ADB also projected Bangladesh's GDP to grow by 3.9 percent in the current fiscal year (FY2024-25), reflecting weaker domestic demand amid ongoing political and economic challenges. This outlook was part of the ADB’s Asian Development Outlook (ADO) for April 2025. Bangladesh must diversify its products and markets for export for the medium and the long term perspective, he said. Bangladesh a land of ‘crazy ideas’ that work: Dr Yunus tells foreign investors “Of course engaging and negotiating the US government is important, but it is a short term measure. More importantly Bangladesh must diversify its products and markets for export,” he said. He also suggested that Bangladesh should take this opportunity to rationalise its import tariff structure and reform its non-tariff barriers as well  considering its tariff regime is over protective. "So, this tariff reform should apply not only to the US but also to other countries," he said.

Bangladesh is currently facing a range of macroeconomic challenges, including a slowing economy, high inflation and a decline in foreign investment, said Hoe Yun Jeong, Country Director of the Asian Development Bank (ADB) Resident Mission in Bangladesh on Wednesday. He said the country is facing a decline in foreign direct investment (FDI) and an alarming rise in non-performing loans (NPLs) within the banking sector, with insufficient foreign exchange reserves adding to the mounting pressure, hindering the country’s ability to navigate the economic turbulence. World Bank, ADB approve budget support worth $1.1 billion Yun Jeong made the remarks while delivering his introductory speech at the launch of the ADB’s flagship publication, Asian Development Outlook (ADO) April 2025, held at the ADB office in Dhaka. “Nevertheless, it is encouraging to note that the interim government has prioritised macroeconomic stability, along with institutional, social and political reforms,” Jeong said. The ADB expects inflation in Bangladesh to remain elevated, with monetary policy likely to stay tight, focusing on resolving vulnerabilities in the banking sector, particularly the issue of rising NPLs. On the external front, Jeong noted that the current account deficit is expected to narrow slightly, supported by strong remittance inflows. Bangladesh, ADB ink $600m loan deal for structural reforms In the fiscal sector, the ADB anticipates the fiscal deficit will remain close to the FY2024 level, driven by improved revenue mobilisation and increased recurrent government spending. Jeong warned of downside risks to the economic outlook, including persistent inflation, prolonged monetary tightening, political uncertainty, adverse weather events and a potential global slowdown triggered by new US tariffs. Looking ahead, he expressed the hope that the government would accelerate reforms to enhance domestic revenue collection, address high NPL levels, ensure energy security and stimulate private sector investment. He also stressed the importance of improving public investment management, especially in enhancing project readiness and implementation capacity. “As a longstanding development partner, ADB will continue to support the government through policy-based loans, project investments, and technical assistance,” Jeong said. He highlighted ADB’s focus on private sector development, disaster resilience, digital transformation, regional cooperation, and the provision of regional public goods and empowerment. “Despite global challenges, Bangladesh’s economy remains resilient. To sustain higher growth, the country must implement essential reforms without delay, especially as it prepares for its graduation from Least Developed Country (LDC) status in November 2026,” he added. Jeong also mentioned an upcoming joint report by ADB and the Organisation for Economic Co-operation and Development (OECD), titled “Roadmap for Investment Policy Reforms and Sustainable Development in Bangladesh,” which outlines key reforms needed to boost trade and attract FDI in the post-LDC graduation era. “Economic growth is only part of the equation — sustainability is the other. We reaffirm ADB’s continued support to the government in implementing necessary reforms and pursuing key projects to help Bangladesh achieve its sustainable development goals,” he said.  

The Asian Development Bank (ADB), the Posts and Telecommunications Division, BTCL, and the Public-Private Partnership Authority (PPPA) signed a memorandum of understanding (MoU) on Monday to develop Bangladesh’s first green data center under a public-private partnership (PPP) model. PPPA Director General (Finance and Administration) A K M Abul Kalam Azad, Bangladesh Telecommunications Company Limited (BTCL) Managing Director Md. Anwar Hossain PTD Additional Secretary Abul Khair Mohammad Salehuddun and ADB Country Director and Hoe Yun Jeong, signed the MoU on behalf of their respective organizations at a ceremony held at the PPPA conference room in Dhaka on Monday. World Bank, ADB approve budget support worth $1.1 billion The state-of-the-art data center will be situated on a BTCL-owned site near Chattogram and built to international standards, ensuring high availability and operational scalability. It will be powered by renewable energy, offering commercial colocation services to public and private enterprises while meeting BTCL's internal data storage needs. “This initiative marks a significant step toward achieving Bangladesh’s digital vision, integrating cutting-edge technology and sustainable practices to support the country’s digital transformation,” said Hoe Yun Jeong. The project is expected to promote private investment in the infotech sector, creating opportunities for increased capital mobilization in digital technologies, he added. Bangladesh, ADB ink $600m loan deal for structural reforms A transaction advisory services (TAS) agreement will soon be signed to implement the project under the PPP model. ADB’s TAS support will include feasibility assessment, project structuring, tendering, and capacity building for stakeholders, fostering an environment conducive to private investment in the IT sector.

World Bank and Asian Development Bank have approved budgetary support loans worth $ 1.1 billion to accelerate the interim government's reform and development activities. The total budget support is expected to be available by December this year, according to a release from Finance Ministry.  Of the total amount the World Bank will provide $500 million and ADB will give $600 million.  Bangladesh, ADB ink $600m loan deal for structural reforms In addition to the budget support, the World Bank has also approved project support of $379 million for the health and nutrition sector and  $ 280 million for the development of the water supply system in Chittagong.  On December 18, 2024, a loan agreement of $ 600 million was signed between the Government of Bangladesh and the Asian Development Bank (ADB) for the programme titled Strengthening Economic Management and Governance Program, Subprogram. On December 19, 2024, the World Bank approved the provision of $ 500 million in budget support to Bangladesh. ADB to lend USD 100 million to Bangladesh for infrastructure dev The World Bank provided this budget support under the Second Bangladesh Green and Climate Resilient Development Credit for the successful achievement of reform activities for green and climate-resilient development.