ADB to provide $400mn loan for inclusive development in Bangladesh

The government has signed a loan agreement of $400 million with the Asian Development Bank (ADB) in a significant move towards climate resilience and inclusive development in Bangladesh.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD) under the Ministry of Finance and Edimon Ginting, country director, of Bangladesh Resident Mission, ADB signed the loan agreement on behalf of both two sides.

The signing ceremony saw the participation of key representatives of Bangladesh and ADB held in the capital on Monday.

The signing signifies a collaborative effort to address climate challenges and foster inclusive development in the country.

The Finance Division, in conjunction with other relevant ministries, has crafted a comprehensive policy reform program as part of the Climate Resilient Inclusive Development Programme.

The programme’s objectives include mitigating greenhouse gas emissions, transitioning to a low-carbon economy, facilitating a sustainable and climate-focused development pathway, and strengthening resilience to adverse climate change impacts.

Siddiky and Ginting affirmed that the outlined program objectives have already been achieved according to the terms of the loan agreement.

ADB’s support, as one of Bangladesh’s largest multilateral development partners since 1973, underscores its commitment to advancing various sectors crucial for the nation’s development.

ADB’s total assistance to Bangladesh, combining loans and grants, stands at over $31.32 billion and $571.2 million, respectively.

The sectors benefiting from ADB’s development assistance include Power, Energy, Local Government, Transport, Education, Agriculture, Health, Water Resources, Governance, and Financial Sectors.

However, Bangladesh is one of the world’s most vulnerable countries to the adverse impacts of climate change, recording an annual average loss of about $3 billion.

The $400 million loan is the first subprogram of the indicative $700 million Climate-Resilient Inclusive Development Program, which will help Bangladesh strengthen its climate resilience, transition to a low-carbon economy, mitigate its greenhouse gas emissions, and mainstream gender equality and social inclusion in the government’s climate actions.