Bangladesh and ADB

ADB is promoting climate resilience and supporting socioeconomic recovery in Bangladesh—focusing on job creation, social protection, sustainable infrastructure, and economic development.

ADB's Work in Bangladesh

Bangladesh’s economy grew 6% in fiscal year (FY) 2023—moderating slightly from 7.1% in FY 2022 but still deemed robust—despite weak export growth due to economic slowdown in major export markets, power shortages, and continued elevated inflation.

ADB has been a major source of external assistance to Bangladesh, providing an average of $2 billion per year since 2016. ADB assistance is aligned with Bangladesh’s Eighth Five-Year Plan, 2021–2025, and Perspective Plan, 2021–2041.

As of 31 December 2023, ADB has committed 726 public sector loans, grants, and technical assistance totaling $31.8 billion to Bangladesh. ADB’s current sovereign portfolio in Bangladesh includes 75 loans and 4 grants worth $13 billion.

Cumulative sovereign and nonsovereign loan and grant disbursements to Bangladesh amount to $23.52 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

ADB committed about $3.5 billion in public sector loans and grants to Bangladesh in 2023, including a $400-million economic recovery program for job creation and domestic resource mobilization to support recovery from the coronavirus disease (COVID-19) pandemic.

In 2023, ADB committed a $400-million policy-based loan to support the Government of Bangladesh in implementing its National Adaptation Plan, 2023–2050 and Nationally Determined Contributions 2021 Update to the Paris Agreement to achieve climate-resilient and inclusive development.

A $100-million tertiary education project is improving computer science, software engineering, and information technology programs in three universities in Bangladesh.

The third tranche of the $300-million Dhaka-Northwest corridor road project will upgrade the 190-kilometer Elenga-Hatikumrul-Rangpur Road to become a four-lane thoroughfare.

ADB committed a $90-million loan to develop infrastructure and systems for clean drinking water and sanitation services in the towns of Bandarban, Lama, and Rangamati in the Chattogram Hill Tracts region.

Vaccine supply in Bangladesh will be ensured through a $336.5-million project establishing domestic vaccine, therapeutics, and diagnostics manufacturing capacity, and strengthening the national regulator.

To help transition to clean energy, ADB committed $200 million for an energy efficiency improvement project involving the installation of smart prepaid gas meters in greater Dhaka area and the surrounding region.

A $300-million program is strengthening the skills base of Bangladesh’s workforce and providing training programs to help increase industry competitiveness.

Students of class two attend a class at the Akhborpur Government Primary School in Mowlovibazar.
Second Primary Education Development Program (Sector Loan) in Bangladesh. Students of class two attend a class at the Akhborpur Government Primary School in Mowlovibazar. Photo: Abir Abdullah/ADB

In rural Bangladesh, a $106-million small-scale water resources project will address water resources management, food security, agricultural productivity, and climate change impacts.

A $120-million livelihood and watershed management project is improving access to basic services and climate resilience of remote and rural communities in the Chattogram Hill Tracts region.

An additional loan of $190 million for an ongoing rural connectivity project is upgrading rural roads, making agricultural areas more productive, and improving socioeconomic centers in rural Bangladesh.

Over 7 million citizens in 88 pourashavas (municipalities) in Bangladesh will enjoy a more livable environment through a $300-million program to improve urban governance and infrastructure.

A $400-million third tranche loan was committed to help complete the ongoing construction of the 102-km dual-gauge railway line between Chattogram and Cox’s Bazar.

ADB is helping in the rehabilitation and reconstruction of northeastern Bangladesh affected by devastating floods in May–June 2022 through a $230-million emergency assistance project.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB's nonsovereign transactions in Bangladesh as of 31 December 2023 amounted to $688.35 million representing 5.83% of ADB’s total private sector portfolio.

Operational challenges. ADB is responding to Bangladesh's need for greater climate resilience, quality education, improved infrastructure, domestic resource mobilization, and skills development to realize the government’s goal of becoming an upper middle-income country by 2031. In 2023, ADB's initiatives and policy dialogue focused on supporting government initiatives to increase project implementation capacity; improve project readiness; strengthen financial management; and enhance the technical design of environment, land acquisition, and involuntary resettlement projects. While delays in procurement, including contract award and disbursement, have had an adverse impact on the portfolio performance, ADB is supporting the government's initiatives to reduce the procurement end-to-end time, complete projects without the need for extensions, and minimize contract variations.

 

Knowledge Work

An ADB brief titled Addressing Climate Risks: Mainstreaming Climate Change in Development Project Planning and Budgeting in Bangladesh explains the country’s vulnerability to climate-related hazards, recommends risk reduction measures, and shares risk assessment tools developed by ADB. The Bangladesh Economic Corridor Development Highlights explains how the development of the Bangladesh Economic Corridor would benefit the country’s marginalized northeast and southwest regions, help develop core industries, boost connectivity, and improve critical infrastructure to create new jobs and accelerate economic growth.

Shareholding and Voting Power

Number of Shares Held
108,384 (1.019% of total shares)

Votes
147,498 (1.109% of total membership, 1.703% of total regional membership)

*Overall capital subscription
$1.45 billion

*Paid-in capital subscription
$72.72 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Abul Hassan Mahmood Ali
ADB Alternate Governor: Md. Shahriar Kader Siddiky
ADB Director: Vikas Sheel (India)
ADB Alternate Director: Nim Dorji (Bhutan)
ADB's Director Advisor: V. Ponnuraj (India) and Smita Sarangi (India)

 

Financing Partnerships

Financing partnerships enable ADB's financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Bangladesh:

  • Sovereign cofinancing: $13.52 billion for 78 investment projects and $103.25 million for 116 technical assistance projects since 1974
  • Nonsovereign cofinancing: $7.59 billion for 9 investment projects since 2001

In 2023, Bangladesh received a total of $1.41 billion of loan cofinancing from the Agence Française de Développement, the Asian Infrastructure Investment Bank, the Export-Import Bank of Korea, the International Fund for Agricultural Development, and the Japan International Cooperation Agency for five projects, and a total of $30.2 million in grant cofinancing from the Education Above All Foundation and the Government of the Netherlands for two investment projects.

 

Future Directions

ADB’s country partnership strategy for Bangladesh supports efforts to achieve prosperity and inclusiveness by boosting competitiveness, employment, and private sector development; promoting green growth and climate resilience; and strengthening human capital and social protection. ADB will accelerate assistance for gender equality and social inclusion, strengthen institutional capacity and governance, deepen regional cooperation and integration, and promote new technology and innovation. ADB has a pipeline of 44 firm projects worth $9.3 billion and 23 standby projects worth $5.2 billion for 2024–2026. In 2024, ADB will support quality education, health care improvement, climate-resilient urban and rural development, power transmission and distribution enhancement, reforms in social protection system, the development of a mass rapid transit system in Dhaka, and preparations for Bangladesh’s graduation from a least-developed country.

This article was originally published in the ADB and Bangladesh: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Last updated: 26 April 2024

Contacts

Bangladesh Resident Mission
Plot E-31, Sher-e-Bangla Nagar
Dhaka 1207, Bangladesh
Tel: +88 02 556 67000
Fax: +88 02 911 7925–26
E-mail

Ministry of Finance
Economic Relations Division
Sher-e-Bangla Nagar
(Planning Commission Campus; Block #08), Dhaka-1207
Tel: +88 02 222 216703
E-mail

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