Dhaka:Bangladesh has entered into financing agreements with the Asian Development Bank (ADB) totaling $277.72 million for two significant development initiatives. These projects focus on expanding affordable housing finance and enhancing electricity access in the Chattogram Hill Tracts.
According to Bangladesh Sangbad Sangstha, the agreements consist of two concessional loans amounting to $275 million and a $2.72 million grant. The signing ceremony in Dhaka saw the participation of Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and ADB Bangladesh Resident Mission Country Director Qingfeng Zhang, who represented Bangladesh and ADB, respectively. ADB Executive Director Satya Srinivas Lolla and senior officials from both the government and the ADB were also in attendance.
The Inclusive Affordable Housing Finance Project will benefit from a $100 million concessional loan from ADB. This initiative aims to improve housing facilities for low- and middle-income families by expanding housing microfinance services and promoting women's empowerment. The project will be implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance. It seeks to enhance access to affordable and climate-resilient housing finance, contributing to poverty reduction and sustainable economic growth.
The second project, Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts, involves a $175 million concessional loan and a $2.72 million grant. The Bangladesh Power Development Board (BPDB), under the Power Division of the Ministry of Power, Energy and Mineral Resources, will execute this project. Its goal is to provide a reliable electricity supply to remote communities by modernizing distribution systems and improving the resilience of power infrastructure. The $2.72 million grant is funded by the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR).
The ADB loan terms for both projects include a 2 percent annual interest rate, with repayment over 25 years and a five-year grace period. Since becoming an ADB member in 1973, Bangladesh has received $36.69 billion in loans and $636.52 million in grants, primarily targeting sectors such as power and energy, transport, education, and health.