Bangladesh has signed loan agreements worth $1.3 billion with the Asian Development Bank (ADB) to implement four large-scale development projects focused on banking sector reform, climate resilience, renewable energy, and transport infrastructure.
The agreements were signed on Friday by Economic Relations Division Secretary Md Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong, according to statements issued by the ADB.
A $500 million loan will finance the Stabilizing and Reforming the Banking Sector Program, Subprogram 1, aimed at strengthening the country’s financial system. The programme targets improvements in regulatory oversight, asset quality, and corporate governance, while promoting greater transparency and aligning the banking framework with international standards. It also includes measures to address non-performing loans and improve the central bank’s liquidity management.
A further $400 million has been allocated to the second phase of the Climate-Resilient Inclusive Development Program (CRIDP). The programme aims to enhance resilience to climate change, reduce emissions in key sectors, and support inclusive growth. It is supported by an additional $113 million from the French Development Agency and $400 million from the Asian Infrastructure Investment Bank (AIIB).
A third component includes a $204 million loan under the fourth tranche of the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project. The funds will be used to upgrade the trade corridor connecting Dhaka to northwest Bangladesh, facilitating improved regional trade and connectivity.
The final agreement provides $200 million for the Power Transmission Strengthening and Integration of Renewable Energy Project. The initiative will upgrade power transmission systems in rural districts including Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira, and support renewable energy integration in southern Chattogram. It aims to improve electricity access and create employment opportunities.