ADB to provide $334m loans, grants
Staff Reporter :
The Asian Development Bank (ADB) and the Bangladesh government signed three agreements totaling over $334 million in loans and grants on Monday.
The funds aim to strengthen power distribution in the northwest, expand water supply services in Khulna, and improve essential infrastructure for displaced Myanmar nationals and host communities.
The agreements were signed at the Economic Relations Division (ERD) in Dhaka by Md Shahriar Kader Siddiky, ERD secretary, and Hoe Yun Jeong, ADB country director for Bangladesh, representing their respective sides.
The $91 million Northwest Distribution Network Modernisation Project will upgrade the power distribution system in the Rajshahi and Rangpur divisions, enhancing efficiency, reliability, and resilience.
The project will integrate advanced smart technologies, reinforce climate-resilient infrastructure, install solar backup systems in critical facilities, and create electricity-driven livelihood opportunities for vulnerable populations, with particular focus on women and marginalized communities in remote riverine islands.
New substations and switching stations will be constructed, existing ones modernized, and rooftop solar systems with battery storage installed.
Additionally, a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and Pacific (JFPR), financed by the Japanese government, will boost disaster preparedness in flood-prone regions.
The Khulna Water Supply Project (Phase 2), supported by a $150 million loan and a $4 million grant, aims to provide piped water access to 1.78 million residents in Khulna city.
The project will promote sustainable surface water usage while addressing salinity issues during dry months. Measures include smart water supply management, expanded SCADA systems, and reduction of non-revenue water. A technical assistance grant will support studies on artificial recharge and groundwater management.
Under the Integrated Services and Livelihood Project for Displaced Myanmar Nationals and Host Communities, Bangladesh will receive a $58.6 million grant from the Asian Development Fund and a $28.1 million concessional loan.
The project will enhance access to water, sanitation, hygiene, energy, and disaster-resilient infrastructure in Cox’s Bazar and Bhasan Char, while promoting social cohesion between displaced people and local communities.
Planned interventions include solar-powered streetlights, improved faecal sludge management, biogas systems, nature-based drainage, food distribution centers, cyclone shelters, mini piped water networks, and road connectivity improvements.
“Through these initiatives, the ADB is supporting Bangladesh in developing climate-resilient infrastructure, improving urban services, and fostering inclusive growth,” said ADB Country Director Hoe Yun Jeong. The projects are expected to contribute to poverty reduction, disaster preparedness, and long-term sustainability.
Currently, Bangladesh hosts over 1 million displaced Myanmar nationals, around 75% of whom are women and children, living across 33 camps in Cox’s Bazar, with more than 36,000 relocated to Bhasan Char.