New 5-year plan eyes over $14bn ADB fund

The government expects to receive more than $14 billion from the Asian Development Bank (ADB) for implementing the new five-year plan.

In line with the 8th Five-Year Plan 2021-25, the Manila-based development lender has already started work on a new country partnership strategy for Bangladesh.

Dr Pear Mohammad, additional secretary to the Economic Relations Division (ERD), said the priority sectors have been identified in the new plan.

"The ADB said it would provide assistance accordingly. At the same time, the development partner has also held discussions with various ministries and departments.

"In preliminary talks, the ADB has pledged $14 billion in assistance over the next five years. But in the end, the amount of aid is expected to increase."

Over the last five years, the regional development bank provided $14 billion worth of financial support to the 7th Five-Year Plan 2016-20.   

Last month the National Economic Council (NEC) approved the government's long-term document of the 8th Five-Year Plan.

The plan centres on six core themes – including a ‍rapid recovery from Covid-19, to restore human health, employment, income, and economic activities; and GDP growth acceleration, employment generation, and rapid poverty reduction.

The other themes are a broad-based strategy of inclusiveness; a sustainable development pathway that is resilient against disaster and clement change; development and improvement of critical institutions necessary to lead the economy to upper-middle-income and country status; and attaining sustainable development goal targets and mitigating the impact of LDC graduation.   

According to an ERD report, in the 8th Five-Year Plan, Bangladesh has to face challenges in some sectors, which will need funding on a priority basis and the ministries have already been advised to prepare development project proposals on a priority basis.

Infrastructure deficit

Bangladesh still ranks 105th out of 141 countries in the Global Competitiveness Index. Significant investments will be needed in the road, rail, ports, water, urban, energy, rural and other infrastructure projects. 

The private sector, and the public and private partnership (PPP) opportunities will be explored. Creating energy demand and grid stability, improving energy mix, and enhancing energy efficiency will be pursued.  

Turning youths into a skilled workforce

A focus will be on exploiting the demographic dividend through an improved human capital development. 

Improving the quality of education and industry will be key priorities. Skills development and up-skilling, certification, and job placement in the middle and higher levels of management will be aggressively pursued. 

Making city and urban centres more livable

With urbanisation to continue over the next plan period, there is a need for managing urban sprawl and planning sustainable and livable cities, towns, and urban centres. 

Focus on agriculture and rural development 

Spreading more equitable development in the countryside will be a key priority. The focus will be on improving rural livelihoods, through increased off-farm incomes and food processing.  

Innovative programmes such as "One District, One Product" will be explored. Crop Insurance, and credit to farmers at reasonable rates together with improved logistics and productivity improvement will be pursued. 

Climate change and disaster resilience

The focus will be on building climate-resilient infrastructure and integrated water resources management for cushioning agriculture production from natural disasters and climate-related vulnerabilities.  

Unleashing technology for a better tomorrow

The power of computing, coding and mobile technologies will be harnessed to bridge the technology divide for financial inclusion and social protection. 

The ADB will focus on improving governance, strengthening institutions and building capacity. 

Attracting private investment and improving the business climate 

To fully exploit the country's economic potential, economic and export diversification will be pursued. Improving logistics, trade competitiveness, fully exploiting the country's regional location and increasing regional trade will be key priorities. 

The ADB seeks to provide support for innovative projects with large and demonstrable development impact.