ADB doubles Bangladesh financing to $2.57 billion in 2025

The Asian Development Bank (ADB) committed $2.57 billion in new sovereign financing to Bangladesh in 2025, more than double its 2024 commitment of $1.18 billion.

The 2025 programme targets priority investments in energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises (SMEs), as well as the improvement of livelihoods and services in Cox’s Bazar. This year’s sovereign lending portfolio reflects a balanced mix across sectors and financing modalities.

“We proudly reaffirm our commitment to supporting Bangladesh’s priorities during this significant transition period, which is further complicated by an increasingly challenging global landscape,” said ADB Country Director Hoe Yun Jeong.

“Our 2025 commitments underscore our enduring partnership with Bangladesh and our shared focus—working closely with the Economic Relations Division (ERD) and other government ministries and agencies—on economic diversification, enhanced infrastructure and services, and human development,” she added.

ADB’s sovereign commitments in 2025 demonstrated a strong focus on infrastructure and institutional reforms. Of the total $2.57 billion committed across 10 projects, about 35% supported transport infrastructure, 23% finance, and 16% public sector management and governance. Energy initiatives accounted for 11%, while water and urban development made up 9%, and human and social development 6%.

Key commitments include the $688 million South Asia Subregional Economic Cooperation Chattogram–Dohazari Railway Project, which will upgrade a critical rail line and build a bypass to enable direct train services from Dhaka to Cox’s Bazar. Also notable are the $500 million Stabilising and Reforming the Banking Sector Program, Subprogram 1, aimed at strengthening regulation, corporate governance, asset quality and financial stability, and the $400 million Climate-Resilient Inclusive Development Program, Subprogram 2, designed to enhance climate resilience, reduce emissions in climate-critical sectors and promote inclusive growth.

Improved project readiness and portfolio management strengthened implementation in 2025. ADB also provided non-sovereign assistance to the private sector, supporting investments in textiles, renewable energy, trade finance, food security, microfinance and public–private partnerships (PPPs).

Throughout the year, ADB worked closely with other development partners to deliver coordinated support for operationalising the Bangladesh Climate Development Partnership, promoting public and financial sector reforms, and enhancing economic diversification and logistics.

These collaborative efforts helped mobilise $720 million in co-financing. ADB also delivered targeted knowledge support to inform policy on foreign investment, inclusive development and public debt management.

As of December 31, 2025, ADB’s cumulative sovereign and non-sovereign loan commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio comprising 48 projects worth $10.8 billion.