Dhaka: The Asian Development Bank (ADB) is set to provide approximately $2.5 billion in funding for at least 10 development projects in Bangladesh in 2026. This initiative is part of ADB's ongoing commitment to support the country's development needs.
According to Bangladesh Sangbad Sangstha, the Manila-based multilateral development financier has almost finalized this financing plan during its recent Country Programming Mission (CPM) for 2026. The ADB also intends to maintain a 'standby fund' to address any emergencies or priorities beyond the initially planned projects.
The ADB's CPM is an annual report outlining planned lending and grants for Bangladesh, and the 2026 mission has assured at least $2.5 billion in funding. The focus areas include climate-resilient development, energy efficiency, public-private partnerships, social protection, and structural reforms to boost economic development and private-sector growth.
In alignment with Bangladesh's demands, current ADB operations emphasize infrastructure, energy, water resources, health, education, and climate-related issues. Additionally, regional connectivity and corridor development are prioritized. The multilateral financier is also focusing on job creation, poverty alleviation, regional integration, health sector digitization, skills development, capacity building, water resources management, and river restoration.
With Bangladesh's anticipated smooth graduation from the Least Developed Countries (LDCs) status, ADB will support creating an enabling environment for this transition. A recent Tripartite Portfolio Review Meeting (TPRM) reviewed 15 ongoing ADB-funded projects in Bangladesh and noted improvements in the tendering process and project readiness.
The ADB is also conducting a study on the Teknaf to Tetulia corridor, aiming to enhance infrastructure and growth centers along this route. Additionally, it has proposed the government to launch a Taka-denominated bond.
In 2023, Bangladesh signed eight project agreements with ADB worth $1.8 billion, including $900 million as budget support. The bank's funding plans for 2026 include significant allocations for various projects, such as $300 million for the Dhaka-Sylhet 4-lane-road-development project and $200 million for the Sustainable Energy Development in Chittagong Hill Tracts Project.
An ADB official mentioned that the 2026 portfolio is an interim arrangement as Bangladesh currently lacks a mid-to-long-term development plan. The current Country Partnership Strategy (CPS) covering 2021-2025 is nearing its end, and discussions for the next CPS are anticipated.
The ADB is Bangladesh's second-largest multilateral development partner, providing $2.52 billion in the last fiscal year and committing $2 billion in assistance. Since 1973, ADB has supported Bangladesh with $33.951 billion in loans and $571.2 million in grants across various sectors.