Dhaka:The Asian Development Bank (ADB) has agreed to provide a $100 million loan to the Palli Karma-Sahayak Foundation (PKSF) to support the expansion of safe, affordable, and disaster-resilient housing for approximately 40,000 low and middle-income families in Bangladesh.
According to Bangladesh Sangbad Sangstha, the Inclusive Affordable Housing Finance Project will emphasize enhancing housing security for women and individuals residing in disaster-prone areas and is set to be implemented until 2031.
The agreements were formalized through a loan agreement between the Government of Bangladesh and ADB, and a project agreement between PKSF and ADB, signed at a hotel in Dhaka. Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, signed the loan agreement for the Government of Bangladesh, while Dr. AKM Nuruzzaman, Senior General Manager of PKSF, signed the project agreement for PKSF. Qingfeng Zhang, Country Director of the Bangladesh Resident Mission, ADB, signed both agreements on behalf of ADB, as stated in a PKSF press release.
The funding will be used for constructing new houses and repairing or upgrading existing ones. It aims to broaden housing finance opportunities for low- and middle-income households that typically have limited access to housing loans through formal banking channels.
A significant focus of the project will be on promoting housing that can endure floods, cyclones, extreme heat, and other natural disasters, integrating disaster and climate vulnerabilities into housing design, construction, and safety measures. This approach will help families secure safer homes and mitigate risks to their lives and assets during disasters.
By combining affordable housing finance with climate resilience, the project is expected to enhance the long-term resilience of vulnerable households, improving their access to safer and more sustainable living conditions.