Asian Development Bank (ADB) will provide $5 billion for the next three years (2020-22).
ADB Country Director for Bangladesh Manmohan Parkash on Wednesday (Sept 11) met with Prime Minister Sheikh Hasina and handed over new Country Operations Business Plan (COBP) for 2020-2022, which programmes around $5 billion in firm projects.
Projects worth another $4.9 billion have been included in the pipeline as “standby”, says a press release.
The projects will be taken up for ADB financing based on their readiness.
The COBP aligns with the government’s Seventh Five-Year Plan and ADB’s Strategy 2030 and supports the implementation of sustainable development goals targets.
It is also aligned with the government’s new manifesto, which highlights the priorities and sets the stage for the next 5-year plan.
ADB assistance is well distributed in infrastructure and social sectors.
About 54% of sovereign investments (by volume) will further improve human capital; enhance urban services, water supply and sanitation; strengthen road, railway and port connectivity; promote rural development; and improve access and quality of electricity supply.
The lending prioritises skills development and tertiary education with an emphasis on information technology. It also prioritises Bangladesh’s participation in regional and global value chains by furthering regional cooperation and integration in the South Asia Subregional Economic Cooperation (SASEC) and beyond.
The programme will enable greater private sector investment by easing credit constraints and facilitating local currency bonds.
Major ADB projects include Dhaka-Sylhet Road, Joydevpur-Elenga-Rangpur-Burimari-Banglabandha road, Faridpur-Barishal road, dual gauging of Dhaka-Chattogram rail lines, Chattogram-Cox’s Bazar Rail Line, Dhaka MRT Line 5 (Gabtoli-Panthapath-Aftabnagar), Skills for Employment Project, Computer and Software Engineering Tertiary Education Project, Dhaka Sewerage System and Water Supply Projects, and Khulna Sewerage System Development Project.
The pipeline also includes projects to automate revenue administration, develop bond markets, strengthen the banking system, and improve irrigation, rural connectivity and electrification.
In its 46-year-long partnership with Bangladesh, ADB has mobilised over $25 billion in loans and grants to help bring better infrastructure, public services, and social development outcomes to the people of Bangladesh.
In 2018 alone, ADB approved a record $2.5 billion in assistance to the country. This included a grant of $100 million as the first phase of a projected $200 million support for the immediate needs of people sheltered in the camps in Bangladesh’s Cox’s Bazar region. The active portfolio has also grown sharply, with around $4.5 billion in 2009 to over $10 billion in 2019.