Bangladesh, Asian Development Bank sign $1.3B loan deal for climate resilience, financial reforms

By SM Najmus Sakib

DHAKA, Bangladesh (AA) - Bangladesh and the Asian Development Bank (ADB) signed four separate loan agreements Friday worth $1.3 billion to support climate resilience, renewable energy, transport infrastructure and reforms in the country's banking sector, according to a statement by the Economic Relations Division (ERD).​​​​​​​

The agreements were signed in Dhaka by ERD Secretary Md. Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong.

The ADB earlier confirmed it had approved a $400 million loan to help Bangladesh strengthen climate resilience, cut emissions in high-impact sectors and advance inclusive development.

“It focuses on creating a supportive environment for climate actions, strengthening adaptation, and accelerating mitigation actions,” Jeong said.

Another $500 million policy-based loan was signed to support Bangladesh’s efforts to stabilize and reform its banking sector. The program aims to improve regulatory oversight, corporate governance, and asset quality.

“As Bangladesh embarks on implementing broad-based reforms in the banking sector, the program will boost the capacity of the Bangladesh Bank, enhance governance of banks, and ensure that the financial sector is well-positioned for higher growth,” said Jeong.

In addition, a $200 million loan for the Power Transmission Strengthening and Integration of Renewable Energy Project will help upgrade transmission infrastructure in rural areas, supporting the integration of renewable energy into the national grid.

A further $204 million loan under the SASEC Dhaka–Northwest Corridor Road Project (Tranche 4) will finance the expansion and modernization of a 190-kilometer (118-mile) road section between Elenga and Rangpur, improving regional connectivity between Bangladesh, Bhutan, India and Nepal.