ADB
Climate Change to get priority in Bangladesh alongside Covid support:ADB
The Asian Development Bank (ADB) must now prioritise climate change, while continuing to support economic recovery and the COVID-19 vaccination program in Bangladesh, says a report released by ADB’s Independent Evaluation Department (IED).
The review recommends that climate change and environment should be the leading strategic priorities in the forthcoming 5-year country partnership strategy for Bangladesh.
Other recommendations aim targeting policy-based lending at the most critical and relevant policy issues where government reform commitment is strong, and where governance can be strengthened, and increasing support for Bangladesh's national health and social protection systems to mitigate the exposure of the population to systemic shocks, including those related to natural hazards, climate change, and disease outbreaks such as COVID-19.
The Bank support for energy and transport infrastructure over the past decade has made a significant contribution to Bangladesh’s economic growth, it added.
Also read: Covid fallout: ADB lowers Bangladesh's FY21 growth forecast
ADB’s program in Bangladesh amounted to nearly $18 billion over the evaluation period, 2011–2020, with two-thirds invested in energy, transport, and water infrastructure.
Impressive results were achieved in the energy sector where ADB has provided nearly 50 years of consistent support.
While access to energy has skyrocketed, more attention must now be paid to the sector’s decarbonization.
The economy grew 8.2% in 2019, the highest in Asia and the Pacific. Until the COVID-19 pandemic started in 2020, poverty had fallen for over 3 decades.
Also Read: IMF upgrades global growth forecast to 6 pct in 2021
Bangladesh now requires immediate assistance to finance COVID-19 vaccination delivery and logistics, and strong support for economic recovery.
“Investment over the short- to medium-term will need to pay attention to recovery from the pandemic and aim to strengthen national health care services and social protection systems to build Bangladesh’s resilience to shocks,” IED Director General Marvin Taylor-Dormond said.
“ADB has had success in providing essential health care services to poor communities in city slums, especially women and children, and there is an urgent need to build on this success, including through working collaboratively with other development partners.”
The evaluation found evidence that where ADB works differently, and where government initiative and leadership is supported, impressive results are possible.
ADB’s support for inclusion, education and skills development, and greater gender equity achieved good results.
Also Read: ADB to provide $5.9 bn firm, $5.2 bn standby project assistance
In education, for example, ADB worked with other development partners to support a sector-wide education program that over time has seen education offered to almost all children of primary school age.
A larger proportion of the students completed schooling, with near gender parity, and narrowed socioeconomic differences on key education indicators, although there is still a need to improve education quality.
On the environmental front, ADB did not take a proactive, holistic, or multisector approach to helping Bangladesh tackle climate change, the report says.
Bangladesh is one of the most disaster-prone countries in the world and is very vulnerable to climate change-related events.
Results were slow to materialize in public sector management, transport, and private sector development. “Reforms in public sector management (PSM) require long-term engagement” IED Director Joanne Asquith said.
“ADB support for PSM and good governance needs to have a stronger analytical base, engage more deeply with civil society, and increase collaboration with the wider development partner community.”
ADB investment in the railway subsector did not deliver results as quickly as anticipated because sector reforms are taking longer to implement than envisaged.
Covid fallout: ADB lowers Bangladesh's FY21 growth forecast
The Asian Development Bank (ADB) has lowered Bangladesh's growth forecast for the current fiscal, with the second wave of Covid-19 posing risks to economic recovery.
The regional lender, however, anticipates a sharp economic recovery in the next financial year, notwithstanding the Covid-19 headwinds. The projections were reflected in the Asian Development Outlook (ADO) 2021 report released on Wednesday.
In January this year, the Bangladesh government revised its gross domestic product (GDP) growth projection for the current fiscal to 7.4 percent from the earlier 8.2 percent, considering the Covid situation in the country.
Also Read: IMF upgrades global growth forecast to 6 pct in 2021
However, ADB has anticipated a drop in GDP growth this fiscal due to the onslaught of the Covid-19 pandemic.
“The economy was showing signs of recovery with higher remittances, exports and other indicators, but the recent surge in the pandemic and the lockdown are likely to trim our GDP growth projection of 6.8% for fiscal year 2020-2021 by at least one percentage point,” ADB's Country Director Manmohan Parkash said.
He said that the government managed the first wave of Covid-19 in 2020 well as the stimulus measures and economic policies have largely been effective.
Also Read: ADB to provide $5.9 bn firm, $5.2 bn standby project assistance
“The ongoing pandemic is an opportunity to undertake further reforms in social protection and health sector, improving the competitiveness of the private sector, reducing the cost of doing business, diversifying exports, and developing skills,” Parkash said.
“Expanding social safety nets, enhancing investments, creating employment, ensuring mass vaccination, and improving the health sector are critical actions for achieving the Eighth Five-Year Plan goals,” the ADB Country Director said.
According to Parkash, future economic growth will depend on recovery in domestic economic activities fuelled mainly by the implementation of stimulus packages, the strong inflow of remittances, and rebound in global trade amid projected growth in major export destinations.
Read UN forecasts 4.7% global economic growth in 2021
"Current account balance is expected to cross into a surplus of 0.7% of GDP in FY2021, contributed by remittance growth. The main risk to this growth projection is further surge of Covid-19 cases and delayed availability and supply of vaccines both globally and domestically," he added.
The ADO 2021 says that continued strong remittance inflow is likely to support domestic demand with growth in private consumption. Remittances from workers overseas increased by 35.1% in the first nine months of FY2021 due to the 2% cash incentive offered by the government and reduced documentation requirements.
Private investment is expected to pick up as moderate growth in private sector credit improves confidence. Higher public investment is anticipated as the government expands capital spending.
Read ADB praises Hasina's leadership in Covid fight
Inflation is expected to reach 5.8% in FY2021 from 5.7% in FY2020 as price pressures are increasing from higher public expenditures to implement stimulus measures and a rise in global food and fuel prices due to pick up in global economic activity, according to the report.
The ADO 2021 points out that a move towards universal health care is critical to ensure inclusive and sustainable development. Health care in Bangladesh can improve with more public funding and effective administration, it says.
"A contributory public social health insurance scheme can help achieve universal health care. To enhance inclusion and high enrollment, participation should be mandated for all with subsidies targeted to lower-income people. Substantial strengthening of domestic resource mobilisation will be needed to mobilise increased funding for healthcare."
Read Funding for vaccine procurement earmarked in deals with WB, ADB: Dr Meerjady
ADB has already provided $650 million in loans and $7.23 million in grants for managing socio-economic impacts of the Covid-19 pandemic and supporting quick recovery. The organisation is also processing two programme loans of $500 million each and a $940 million loan for the government’s Covid-19 vaccine programme.
In its 47-year-long partnership with Bangladesh, ADB has mobilised around $40 billion in loans and grants, including cofinancing, to help bring better infrastructure, public services, and social development outcomes to the people of Bangladesh.
ADB’s current sovereign portfolio in Bangladesh has 49 projects with around $11 billion. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members -- 49 from the region.
Read Post-pandemic recovery in Bangladesh: ADB to accelerate project implementation.
Funding for vaccine procurement earmarked in deals with WB, ADB: Dr Meerjady
The government has signed deals with the World Bank and Asian Development Bank to get Covid-19 vaccine shots quickly, Dr Meerjady Sabrina Flora, additional director general of Health Services division, said.
The World Bank has agreed to provide $500 million to Bangladesh in additional financing to buy the Covid-19 vaccine shots, while ADB has agreed to give $940 million, she said on Wednesday at a virtual press conference from the Directorate General of Health Services (DGHS).
The $500 million World Bank loan for buying vaccine shots under the "Covid-19 Emergency Response and Pandemic Preparedness Project" will help Bangladesh vaccinate about 54 million people, the multinational lender said on Wednesday.
Also read: Bangladesh inks over $1 b deal with World Bank for responding to COVID-19 pandemic
Also, the World Bank said the project would help Bangladesh procure vaccines; expand storage facilities; and distribute and deploy the vaccines.
However, Sabrina said: "We are in touch with India's Serum Institute about vaccine supply, too. Also, the government is exploring alternative sources of Covid-19 vaccines. "
Sabrina hoped that Bangladesh would get COVAX vaccine doses fast.
Also read: WHO calls for prioritising vaccine contracts with COVAX
COVAX now has agreements in place to access nearly 2 billion doses of several promising vaccine candidates and laid the groundwork for further doses to be secured through contributions from donors, the World Health Organization (WHO) said on December 18, 2020.
"These agreements mean that all COVAX's 190 participating and eligible economies will be able to access doses to protect vulnerable groups in the first half of 2021."
"At least 1.3 billion donor-funded doses will be made available to 92 economies eligible for the Gavi COVAX AMC, targeting up to 20% population coverage by the end of the year," the WHO added.
Also read: ‘We sink or we swim together’: 5 things you need to know about COVAX
However, Sabrina also said: "If the local companies want to make the vaccine, the government will give them maximum support. The Health Minister Zahid Maleque has already visited the factories of several companies; they are making good progress."
Post-pandemic recovery in Bangladesh: ADB to accelerate project implementation
Bangladesh and Asian Development Bank (ADB) Wednesday agreed on short- and medium-term roadmaps for 2021-2022 to speed up the implementation of ADB-assisted projects in the post-pandemic phase.
The decision emerged from a tripartite portfolio review meeting where the progress of actions agreed in late 2020 and the readiness status of 2021 pipeline projects were assessed.
Specific actions were agreed for slow-moving projects to use the project money with speed and efficiency.
Also read: ADB praises Hasina’s leadership in Covid fight
Economic Relations Division Secretary Fatima Yasmin and ADB Country Director Manmohan Parkash co-chaired the virtual TPRM, ADB said on Wednesday.
"Post pandemic, we are focusing on accelerated project implementation for faster socio-economic recovery," said Manmohan Parkash. "Expediting procurement, accelerating approval, mobilising consultants and contractors early, and implementing health safety guidelines are some of the special actions agreed today."
Also read: COVID-19: Govt, ADB sign agreement for $3m grant
The ADB country director added: "We also agreed on the need for engaging good consultants and contractors, effective contract management, efficient land acquisition and resettlement, proper implementation of the environmental management plan, and sound financial management, in addition to ensuring proper readiness before processing projects."
ADB's current sovereign portfolio has 52 projects with $11.26 billion; the bank's cumulative lending to Bangladesh stands at around $39 billion in loans and grants, including co-financing.
Also read: ADB gives another $50m for COVID-affected Bangladeshi microenterprises
The regional development bank operates in Bangladesh in six sectors – energy, transport, water and urban or municipal infrastructure and services, education, finance, and agriculture, natural resources, and rural development.
ADB praises Hasina’s leadership in Covid fight
The Asian Development Bank (ADB) on Tuesday highly praised Prime Minister Sheikh Hasina's dynamic and successful leadership in fighting the Covid-19 pandemic and rolling out a nationwide vaccination programme.
ADB okays $0.5 mln grant to support govt to restore Dhaka’s degraded waterbodies
The Asian Development Bank (ADB) has approved $0.5 million in grant assistance for supporting the government’s efforts to restore severely degraded waterbodies in Dhaka for managing watershed sustainably.
ADB gives another $50m for COVID-affected Bangladeshi microenterprises
The Asian Development Bank (ADB) and the government on Monday signed agreements for $50 million in additional loan to help restore the economic activities of microenterprises in Bangladesh, which have been severely affected by the COVID-19 pandemic.
ADB approves grant to improve Bangladesh’s business competitiveness
The Asian Development Bank (ADB) has approved $0.5 million in grant assistance for supporting knowledge works to promote business competitiveness and intraregional trade of Bangladesh.
ADB launches $9 billion vaccine initiative for Asia Pacific
Asian Development Bank (ADB) has launched a $9 billion Asia Pacific Vaccine Access Facility (APVAX) vaccine initiative offering rapid and equitable support to its developing members as they procure and deliver effective and safe coronavirus disease (COVID-19) vaccines.
More than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 200,000 deaths, according to a release from the ADB.
As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4% in 2020—the first regional gross domestic product contraction since the early 1960s.
Promoting safe, equitable, and effective access to vaccines is a top priority for ADB’s COVID-19 response efforts.
Vaccination programs can break the chain of virus transmission, save lives, and mitigate the negative economic impacts of the pandemic by restoring confidence in people’s ability to work, travel, and socialize safely.
The APVAX provides a comprehensive framework and resource envelope for supporting developing Asia’s vaccine access, using two complementary components.
The Rapid Response Component will provide timely support for critical vaccine diagnostics, procurement of vaccines, and transporting vaccines from the place of purchase to ADB’s developing members.
The Project Investment Component will support investments in systems for successful distribution, delivery, and administration of vaccines along with associated investments in building capacity, community outreach, and surveillance.
This may include such areas as cold-chain storage and transportation, vehicles, distribution infrastructure, processing facilities, and other physical investments.
The component may also be used to develop or expand vaccine manufacturing capacity in developing members.
ADB approves $50 mln loan for Bangladesh
The Asian Development Bank (ADB) has approved a $50 million loan to help restore the economic activities of microenterprises in Bangladesh, which have been severely affected by the COVID-19 pandemic.
The loan will scale up the ongoing Microenterprise Development Project, approved by ADB in 2018 to provide a $50 million credit line to Palli Karma Sahayak Foundation (PKSF), a government development finance and capacity building organisation.
Under the ongoing project, the PKSF, through its 77 partner organisations, has so far provided loans to 39,580 microenterprises, generating 91,430 jobs in rural areas.
The new credit line to the PKSF will provide loans to at least an additional 30,000 microenterprises affected by COVID-19, 70 percent of which are women-led. The project will strengthen the capacity of 120 partner microfinance institutions in microenterprise lending, such as credit appraisal, pricing, and financial and portfolio management and monitoring.
It will expand the application of the pilot mobile-based microenterprise financing application to an additional 10,000 borrowers, which facilitates loan applications, disbursement, and collection. The project will identify three additional microenterprise products for expansion and support microenterprise cluster development.
ADB Principal Country Specialist for Bangladesh Jyotsana Varma said the additional financing will supplement the ongoing project by injecting liquidity in the rural economy by providing cheaper financing to microenterprises, helping them continue their business and retain their employees, especially women entrepreneurs who have been heavily hit by the pandemic.
He said that the project will increase access to financing from microfinance institutions and further contribute to the growth of microenterprises in the country.