The Asian Development Bank (ADB) and the government of Bangladesh on Monday signed a series of agreements totaling $327.7 million in loans and grants to improve water supply in Khulna city, enhance power distribution in the northwest region, and support displaced people from Myanmar and host communities.
Md Shahriar Kader Siddiky, secretary, Economic Relations Division (ERD), and Hoe Yun Jeong, country director, ADB, signed the agreements on behalf of Bangladesh and ADB, respectively, at a ceremony held at the ERD offices in Dhaka.
Khulna water supply project
ADB signed a $150 million loan agreement and a $4 million technical assistance grant to expand water supply services for unserved residents of Khulna and address ground-source water salinity. The Khulna Water Supply Project (Phase 2) will provide 1.78 million people with a reliable, continuous piped water supply through 2050.
The project will introduce climate-resilient solutions to combat source water salinity during the dry season, expand supervisory control and data acquisition (SCADA) systems, extend district metering areas to reduce non-revenue water, and strengthen the operational efficiency of the Khulna Water Supply and Sewerage Authority (KWASA). The $4 million grant from the Urban Resilience Trust Fund will support a study on artificial recharge and groundwater management.
Northwest distribution network modernization project
ADB signed a $91 million loan agreement and a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), funded by the government of Japan, to modernize the power distribution network in the Rajshahi and Rangpur divisions.
The project will drive sustainable and digital transformation by integrating advanced smart technologies, constructing six new 33/11 kilovolt substations, building seven new switching stations, modernizing 10 substations with gender-inclusive design, and establishing a disaster recovery center. Intelligent electronic devices with advanced fault detection systems will be installed, and four transformer repair workshops will be upgraded to improve safety and hazardous waste management.
Solar backup systems will be deployed at control centers, while solar nano-grids will be installed at flood shelters in riverine islands. The JFPR grant will strengthen disaster preparedness, support income-generating activities for vulnerable communities, and promote poverty reduction in flood-prone areas.
Integrated services and livelihood for displaced people from Myanmar and host communities
ADB signed agreements for a $58.6 million grant from the Asian Development Fund (ADF) and a $28.1 million concessional loan to provide infrastructure and services for displaced people from Myanmar and host communities in Cox’s Bazar and Bhasan Char.
The project will expand access to water, sanitation, hygiene, roads, bridges, drainage, food security, energy, and disaster resilience. In camps, it will install solar-powered streetlights, rehabilitate fecal sludge management systems, optimize biogas production for cooking, and construct food distribution centers with inclusive access. In host communities, multi-purpose cyclone shelters will be built in Hatia, and mini piped water systems will be introduced across nine upazilas in Cox’s Bazar. Surface water treatment plants and transmission pipelines will deliver safe water to Teknaf, while road improvements in Cox’s Bazar and Bhasan Char will enhance mobility and connectivity.
Currently, more than 1 million displaced people from Myanmar—about 75% of them women and children—reside in 33 camps in Cox’s Bazar, while over 36,000 have relocated to Bhasan Char. This new funding builds on ADB’s Emergency Assistance Project and additional financing, which has provided $171.4 million since 2018.
ADB’s commitment
“ADB is pleased to support Bangladesh through these transformative projects that enhance climate resilience, strengthen infrastructure, and improve livelihoods for vulnerable communities,” said Country Director Hoe Yun Jeong. “Our assistance reflects a long-term commitment to inclusive growth, disaster preparedness, and sustainable solutions.”
ADB, founded in 1966 and owned by 69 members including 50 from the region, continues to support inclusive, resilient, and sustainable growth across Asia and the Pacific.
