Staff Reporter :
In a major move to support Bangladesh’s sustainable development agenda, the Asian Development Bank (ADB) has signed three significant loan agreements with the Government of Bangladesh, amounting to a total of $1.1 billion.
The funds are earmarked for reforming the banking sector, upgrading power infrastructure, and enhancing climate resilience and inclusive growth.
The agreements were signed in Dhaka by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB Country Director for Bangladesh.
ADB has approved a $500 million loan under the first subprogram of the Stabilising and Reforming the Banking Sector Programme.
This initiative aims to strengthen governance, improve asset quality, and enhance the regulatory framework of Bangladesh’s financial institutions.
The programme will boost the capacity of Bangladesh Bank, support resolution of non-performing loans, improve liquidity management, and align the banking sector more closely with international standards. It will also promote digital banking infrastructure and expand affordable financing for micro, small, and medium enterprises (MSMEs), facilitating greater financial inclusion.
A $200 million loan has been approved to upgrade rural power transmission grids within the Bangladesh Economic Corridor, covering districts including Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira. The project will support integration of variable renewable energy (VRE) from the Chattogram region and aims to improve the reliability, resilience, and inclusiveness of the national grid.
Hoe Yun Jeong emphasised the project’s importance for sustaining economic growth, reducing poverty, and ensuring energy access for disadvantaged communities. It also aligns with government goals on clean energy transition and disaster-resilient infrastructure.
The third agreement provides a $400 million loan for Phase II of the Climate-Resilient Inclusive Development Programme (CRIDP). This programme will be co-financed by the Agence Française de Développement (AFD) with $113 million, and the Asian Infrastructure Investment Bank (AIIB) with $400 million, marking one of the largest climate financing efforts in Bangladesh.
CRIDP will establish the Bangladesh Climate Development Partnership platform, introduce disaster risk financing mechanisms such as crop insurance, and promote gender-responsive, youth-led climate adaptation at the local level. It will also update the Dhaka Strategic Transport Master Plan and monitor progress on clean energy within the Integrated Energy and Power Master Plan.
Given Bangladesh’s acute vulnerability to climate change-forecasting potential GDP losses of up to one-third by 2070-these initiatives are seen as critical to safeguarding the country’s long-term economic stability and environmental sustainability.
