Bangladesh on Friday signed loan agreements worth $1.3 billion with the Asian Development Bank (ADB) to finance four major development projects focusing on climate resilience, renewable energy, transport infrastructure, and reforms in the banking sector.
The agreements were signed between the Economic Relations Division (ERD) and ADB at a ceremony held at the ERD in the capital.
Md Shahriar Kader Siddiky, secretary of ERD, and Hoe Yun Jeong, country director of ADB, signed the documents on behalf of the government of Bangladesh and ADB, respectively.
“These agreements mark a significant step forward in our efforts to strengthen climate resilience, boost infrastructure, promote clean energy, and ensure financial stability,” said Shahriar.
“The support from ADB will help us advance inclusive and sustainable development in line with our national priorities,” he added.
The projects are:
- $400 million for the Climate-Resilient Inclusive Development Programme (CRIDP): The program aims to enhance climate resilience, reduce emissions, and promote inclusive growth. It includes co-financing of nearly $113 million from Agence Française de Développement and $400 million from the Asian Infrastructure Investment Bank. CRIDP will establish the Bangladesh Climate Development Partnership, enhance disaster risk financing, promote gender-responsive local adaptation, and support renewable energy and transport master plans.
- $200 million for the Power Transmission Strengthening and Integration of Renewable Energy Project: This initiative will upgrade power transmission infrastructure in rural districts including Bogra, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira. It will also support the integration of renewable energy in the southern Chittagong region, aiming to ensure reliable and inclusive access to electricity and create employment opportunities.
- $204 million under the SASEC Dhaka–Northwest Corridor Road Project (Tranche 4): The funding will support the expansion and modernization of a 190-kilometre section from Elenga to Rangpur. The project aims to improve regional connectivity with Bhutan, India, and Nepal. It includes climate-resilient design elements and gender-responsive features such as footbridges and dedicated lanes for non-motorized transport.
- $500 million for the Stabilizing and Reforming the Banking Sector Program: This reform-focused program will strengthen regulatory oversight, improve the quality of financial assets, and promote financial inclusion. It will enhance the capacity of Bangladesh Bank (BB) and address challenges related to non-performing loans.
The ADB country director said the comprehensive support package will contribute significantly to Bangladesh’s long-term resilience and inclusive development goals.
