The Asian Development Bank (ADB) has extended a loan of US$1.3 billion (approximately Tk 15,888 crore at Tk 122.22 per dollar) to Bangladesh for four key development projects.
The agreement was signed on Friday between the Government of Bangladesh and ADB. Shahriar Quader Siddiqui, Secretary of the Economic Relations Division (ERD), signed on behalf of the government, while ADB's Bangladesh Country Director Hoey Yun Jeong represented the lender.
ADB will provide $500 million to stabilise and reform Bangladesh's banking sector. The fund aims to strengthen regulatory supervision, corporate governance, asset quality, and overall financial stability. It will support improvements in liquidity management by Bangladesh Bank and introduce immediate measures to address non-performing loans (NPLs). The focus will be on policy reforms to enhance the resilience of the financial sector.
Sanjeev Kaushik, ADB's Chief Financial Sector Specialist, said, "The main challenges in the banking sector include weak asset quality, inadequate liquidity, and insufficient financial intermediation-resulting in low financial inclusion. This program will strengthen the regulator's capacity to meet international standards, boost capitalisation, and improve access to finance for micro, small, and medium enterprises."
ADB and the Government of Bangladesh have also signed a $204 million loan deal for developing the Dhaka-Northwest International Trade Corridor. The fund is part of the fourth tranche of a $1.2 billion multi-regional loan under the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka Northwest Corridor Road Project.
According to the ADB Country Director, the project supports Bangladesh's commitment to modernising its road transport system and enhancing regional connectivity with Bhutan, Nepal, and India. It will help develop 190 kilometers of road from Elenga to Rangpur via Hatikumrul into a four-lane highway. Additional features include footbridges, sidewalks, and two dedicated lanes for slow-moving vehicles to improve safety.
ADB will provide $200 million to improve the quality, reliability, and efficiency of Bangladesh's power supply and expand renewable energy use. Under the Power Transmission Strengthening and Renewable Energy Integration project, transmission infrastructure will be enhanced in rural areas of Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira. It will also facilitate the integration of power from the Variable Renewable Energy (VRE) hub in South Chattogram into the national grid.
"Reliable electricity is essential for sustaining economic growth, reducing poverty, expanding businesses, and creating jobs-especially for the poor and marginalised," said ADB Country Director Hoey Yun Jeong. "This project will integrate renewables, build sector capacity, and create local employment using modern technology."
ADB will provide $400 million to boost Bangladesh's climate resilience, reduce emissions, and promote inclusive development under the second phase of the Climate-Resilient Inclusive Development Programme (CRIDP). The program also includes $113 million from Agence Française de Développement (AFD) and $400 million from the Asian Infrastructure Investment Bank (AIIB).
