Govt seeks $5.15b ADB financing for 29 development projects

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Govt seeks $5.15b ADB financing for 29 development projects

B Mirror Report: The government has prepared a pipeline of 29 development projects requiring around $5.15 billion in financing from the Asian Development Bank (ADB) over the next two years to support infrastructure development, climate resilience and economic reforms.

According to official documents, Bangladesh plans to launch 10 projects in 2026 and another 19 projects in 2027 with ADB assistance.

The proposed financing package includes $2.454 billion from the ADB’s Ordinary Capital Resources (OCR) and $2.692 billion through its Concessional OCR Lending (COL) window.

An official of the Economic Relations Division (ERD) said the ADB has expressed its willingness to finance the proposed projects. The project pipeline, jointly prepared by the ERD and the Manila-based lender, has been circulated among relevant ministries and divisions for endorsement before finalisation.

For 2026, the government has proposed projects requiring $2.44 billion, including $950 million in OCR financing and $1.49 billion in concessional loans.

The largest proposal is the Strengthening Economic Management and Governance Programme (Subprogramme-2) under the Finance Division, which seeks $750 million, including $450 million from OCR resources.

The Roads and Highways Department has proposed the second tranche of the SASEC Dhaka-Sylhet Corridor Road Investment Project, requiring $300 million in financing.

Other major proposals include $300 million for the NextGen Secondary Education Programme and $250 million for the Second Strengthening Social Resilience Programme.

Urban development and utility projects also feature prominently in the 2026 pipeline. The Local Government Division has proposed the Narayanganj Green and Resilient Urban Development Project at an estimated cost of $115.8 million and the Cluster Towns Water Supply and Sanitation Project requiring $150 million.

Additional projects include initiatives for sustainable energy development in the Chattogram Hill Tracts, affordable housing finance and commercialisation of high-value crops.

For 2027, the government has included 19 projects seeking a combined $2.71 billion in ADB financing, comprising $1.50 billion from OCR resources and $1.20 billion through concessional lending facilities.

Transport and logistics projects account for a significant share of the proposed financing. The government plans to seek $300 million for the SASEC Dhirasram Inland Container Depot Project and $200 million for the Railway Rolling Stock Project.

Another $150 million has been proposed for the Last-Mile Connectivity and Integration Project aimed at improving rural road connectivity.

In the energy sector, the Power Division has sought $250 million for the Power Transmission Grid Network Modernisation Project and $204 million for the West Zone Power Distribution System Improvement Project.

Climate adaptation and water management projects also feature prominently. The Ministry of Water Resources has proposed the Adaptive River System Management Project requiring $150 million, alongside $15 million for activities under the Resilient River and Canal Restoration Facility.

The Local Government Division has also proposed two major urban water projects for 2027 — the Dhaka Sewerage System Development Project, requiring $300 million, and the Coastal Towns Water Supply Improvement Project, estimated at $150 million.

The Finance Division has included several policy-based lending programmes, including the Sustainable Finance and Capital Market Development Subprogramme-1, seeking $300 million, and the Enhancing Competitiveness through Improved Logistics and Economic Corridor Development Programme, requiring $200 million.

Other proposed projects cover cyber security, universal pension support, agricultural tertiary education, workers’ social protection and digital transformation of the health sector.

Officials said the proposed project pipeline reflects the government’s priorities of improving connectivity, strengthening urban services, enhancing energy security and building resilience against climate-related challenges. The pipeline will serve as the basis for discussions with the ADB on financing commitments and implementation schedules in the coming months.

 

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