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.
Under the Inclusive Affordable Housing Finance Project, the financing will also focus on strengthening housing security for women and people living in disaster-prone areas. The project will run until 2031.
A loan agreement between the Government of Bangladesh and ADB and a project agreement between PKSF and ADB were signed at a hotel in Dhaka on Wednesday.
Md Shahriar Kader Siddiky, secretary of the Economic Relations Division under the Ministry of Finance, signed the loan agreement on behalf of the government, while PKSF Senior General Manager Dr AKM Nuruzzaman signed the project agreement on behalf of PKSF.
Qingfeng Zhang, country director of ADB’s Bangladesh Resident Mission, signed both agreements on behalf of the ADB.
The loan will finance the construction of new homes as well as the repair and upgrading of existing houses. It will expand access to housing finance for low- and middle-income households that have limited access to formal bank loans.
The project will also promote housing designed to withstand 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 to help households reduce risks to their lives and assets during disasters.
By combining affordable housing finance with climate-resilient construction, the project aims to improve access to safer and more sustainable homes while strengthening the long-term resilience of vulnerable households.