ADB signs agreements for $528 million loans to Bangladesh

The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday signed agreements for $250 million in loans to strengthen climate and disaster resilience in 22 coastal towns in Bangladesh and $278.29 million in loans to provide long-term financing and catalyze private sector financing for infrastructure development, reducing pressures on public finance, and enhancing value for money.

Sharifa Khan, secretary, Economic Relations Division, and Jiangbo Ning, deputy country director, ADB, signed the agreements on behalf of Bangladesh and ADB, respectively.

Climate and disaster resilience

"The project prioritizes local economic development in project towns by enhancing the livelihood resilience and adaptive capacity of vulnerable households through the graduation program in six project towns with high poverty levels," said Deputy Country Director Jiangbo Ning. 

"The project will support the Government of Bangladesh in achieving integrated and sustainable urban development to improve the livability of coastal towns in the face of increasing climate-related disaster risks," Deputy Country Director Jiangbo Ning.

The assistance under the Coastal Towns Climate Resilience Project will develop infrastructure for building climate resilience in coastal towns, including infrastructure to improve urban flood risk management such as stormwater drainage, nature-based solutions, water body restoration, and integrated waste management. Cyclone shelters with early warning systems will be established, taking into account the needs of the elderly, women, children, and persons with special needs. Bridges, culverts, and roads with stormwater drainage will be constructed and rehabilitated, reads a press release.

A comprehensive set of interventions in six project towns will be implemented to help vulnerable households, especially poor women, cope with climate shocks and develop livelihood resilience. These include climate risk assessment for diversifying livelihoods, household skills and resources mapping, enterprise and employment matching, and provision of livelihood training.

The project will strengthen the knowledge and capacity of the Local Government Engineering Department and the project towns in managing climate and disaster resilience. They will be trained on nature-based and green solutions, gender equality and social inclusion-responsive climate and disaster risk sensitive master planning, and information technology-based remote monitoring to inform risk-based urban development plans and develop mitigation measures. The project will also enhance public awareness to prepare for future emergencies and crises. 

The ADB financing includes $246 million in regular and concessional loans and a $4 million grant from the Asian Development Fund. The Government of Bangladesh will contribute $60 million.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Infrastructure development, reducing pressures on public finance, and enhancing value for money

The assistance under the second tranche of the Third Public-Private Infrastructure Development Facility (PPIDF-3) will support investment in smaller energy efficiency, renewable energy solutions, and social infrastructure projects.

"The assistance will increase the availability of long-term debt financing, and catalyze take-out financing for infrastructure projects," Deputy Country Director Jiangbo Ning. "I am hopeful that the project will significantly promote public-private partnership (PPP) by implementing a wide range of projects in renewable energy, transport, education, telecommunications, economic zone development, and energy efficiency in the manufacturing industry, as identified by the Infrastructure Development Company Ltd," added Mr. Ning.

The PPIDF-3 is a continuation of the Public-Private Infrastructure Development Facility and the Second Public-Private Infrastructure Development Facility addressing the infrastructure deficiencies in Bangladesh. The PPIDF-3 will help catalyze commercial financing through IDCOL-supported infrastructure subprojects with the value addition of supporting private sector development. The project also seeks to strengthen the institutional capacity of IDCOL to fulfill its mission as a flagship financial institution supporting PPP finance in the infrastructure sector. Tranche 1 has made great progress on these fronts, supporting eight infrastructure subprojects and two renewable and energy efficiency subprojects, and catalyzing $457 million in private sector investments. Tranche 2 will continue to fund at least five infrastructure subprojects and two subprojects in the renewable energy and energy efficiency areas amounting to $278.29 million.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.