Dhaka: Bangladesh is set to receive approximately $775 million from the Asian Development Bank (ADB) for new projects targeting the power, energy, housing, and education sectors. This funding aims to bolster the country's infrastructure and educational reforms through a series of strategic initiatives.
According to Bangladesh Sangbad Sangstha, the government is actively engaging with the Manila-based ADB to finalize these projects. A senior official from the Economic Relations Division (ERD) confirmed that negotiations for a $175 million loan for the "Bangladesh: The Sustainable Energy Development and Empowering Communities in Chattogram Hill Tracts Project" have already concluded, pending approval from the Executive Committee of the National Economic Council (ECNEC).
This project focuses on enhancing power distribution in the Chittagong Hill Tracts, including the construction of six new substations across Rangamati, Khagrachari, and Bandarban. Additionally, it will upgrade existing substations and establish a new switching station to improve energy efficiency in the region.
SM Jakaria Huq, ERD Additional Secretary and Wing Chief, ADB, disclosed plans for upcoming negotiations for two more projects: a $100 million "Bangladesh: Inclusive Affordable Housing Finance Project" and a $200 million "Strengthening of Distribution network for 13 Palli Bidyut Samities Surrounding Dhaka City." These talks are expected to occur this month.
The housing finance project seeks to address market failures hindering affordable housing solutions for low- and middle-income families, with a focus on women's access to finance. The project will introduce innovative credit lines through local microfinance institutions to support these demographics.
The "Strengthening of Distribution network for 13 Palli Bidyut Samities Surrounding Dhaka City" project, valued at Taka 4,973.73 crore, aims to modernize the power distribution in rapidly industrializing zones around Dhaka, including Gazipur, Narayanganj, and Narsingdi. This initiative will be led by the Bangladesh Rural Electrification Board (REB) to meet the growing electricity demands of industries and households.
In addition, ADB and the Global Partnership for Education (GPE) will jointly fund a $350 million education reform program in Bangladesh, known as the "NextGen Education Programme." This program intends to enhance learning outcomes, expand digital education, and strengthen institutional capabilities.
The funding includes a $300 million concessional loan from ADB and a $50 million grant from GPE. The program will be executed through various projects under the Ministry of Primary and Mass Education, the Secondary and Higher Education Division (SHED), and the Technical and Madrasah Education Division (TMED) by 2030.
The initiative aims to transform Bangladesh's educational landscape through digital advancements, improved teaching, and infrastructural developments. With an emphasis on measurable improvements, the program aspires to be a pivotal reform in the country's education sector.
Earlier this year, ADB committed to providing Bangladesh with $5 billion over five years to support its Integrated Growth Network Development Initiative, enhancing regional connectivity and investment.