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ADB plans $300m funding for urban development and water projects in Bangladesh
BY Insider Desk
October 29, 2025

The Asian Development Bank (ADB) is preparing to commit around $300 million to two major projects in Bangladesh in 2027, aimed at strengthening water supply, sanitation, and urban development across key towns and city regions.
According to officials at the Economic Relations Division (ERD), the Manila-based lender has placed $150 million in its project pipeline for the Cluster Towns Water Supply and Sanitation Project, to be implemented in 22 coastal towns. The Department of Public Health Engineering (DPHE) has been designated as the executing agency.
The project will focus on improving water supply systems, sanitation facilities, and solid waste management in vulnerable coastal areas. A feasibility study now underway is assessing existing infrastructure, including water sources, treatment facilities, distribution networks, and sanitation systems.
In parallel, the ADB has also planned another $150 million for the Third City Region Development Project (CRDP), targeting urban and regional development in the Mymensingh City Region (MCR) and Rajshahi City Region (RCR). The Local Government Engineering Department (LGED) will lead the implementation.
The CRDP aims to strengthen city and regional economic strategies through sustainable urban drainage systems, including nature-based solutions, and the development of civic infrastructure such as roads, transport terminals, and community markets.
It will also promote innovative financing for infrastructure maintenance and capacity building for municipal authorities in climate resilience, participatory urban planning, and sustainable service delivery.
The project will prepare Comprehensive City Region Plans (CCRPs) for Mymensingh and Rajshahi, integrating regional connectivity, economic productivity, and natural capital management to foster balanced urban growth and resilience.
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