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The government has signed loan agreements worth $1.3 billion with the Asian Development Bank (ADB) to implement four major development projects in Bangladesh, covering climate resilience, renewable energy, transport infrastructure, and banking-sector reforms.
Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong signed the agreements on behalf of their respective sides on Friday, according to ADB press statements.
Of the total, a $500 million loan will support the "Stabilizing and Reforming the Banking Sector Program, Subprogram 1," which aims to improve regulatory oversight, corporate governance, asset quality, and overall financial sector stability in Bangladesh.
The programme focuses on policy reforms to strengthen the resilience of the financial system by enhancing banking sector governance, improving Bangladesh Bank's liquidity management framework, and implementing urgent measures to address non-performing loans.
It also promotes gradual alignment with international banking standards and greater transparency in asset quality data.
Another $400 million loan has been allocated for the second phase of the Climate-Resilient Inclusive Development Program (CRIDP), which aims to boost Bangladesh's climate resilience, reduce emissions in critical sectors, and promote inclusive development.
The programme includes $113 million in co-financing from the French Development Agency (AFD) and $400 million from the Asian Infrastructure Investment Bank (AIIB).
A third agreement involves a $204 million loan under the fourth tranche of the $1.2 billion Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project.
The funds will be used to upgrade the Dhaka-Northwest international trade corridor to improve regional connectivity and facilitate trade.
Also, the ADB will provide $200 million for the Power Transmission Strengthening and Integration of Renewable Energy Project.
The initiative seeks to upgrade power transmission infrastructure in rural districts including Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira, while also enabling the integration of renewable energy in southern Chattogram.
The project aims to enhance reliable electricity access and generate employment.
Speaking at the signing event, ADB Country Director Hoe Yun Jeong said the financing packages would play a crucial role in advancing Bangladesh's long-term development goals through strengthened resilience and inclusive growth.
ERD Secretary Md Shahriar Kader Siddiky described the agreements as "significant steps" toward achieving the government's targets in climate adaptation, infrastructure modernisation, clean energy promotion, and financial sector reform.
He noted that the ADB's support aligns well with Bangladesh's national priorities for inclusive and sustainable development.
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