The Asian Development Bank (ADB) is likely to come up with a hefty support of around $2.5 billion in the next calendar year (2026) against a good number of projects in its continued efforts to strengthen further its relationship with Bangladesh. Report BSS
“The ADB is likely to provide around $2.5 billion to Bangladesh for funding at least 10 development projects next year,” said a senior official of the Ministry of Finance.
The manila-based multilateral development financier has almost finalized such financing plan in its recently held Country Programming Mission (CPM) for 2026.
Besides, fund will be kept ready as ‘standby fund’ as guardrails against any emergency or priority for Bangladesh beyond the 10 projects.
"The ADB CPM completed its mission last week. It sat for a wrap-up meeting with the ERD. It has assured Bangladesh of providing at least around $2.5 billion worth of funds for several development projects in 2026," a senior ERD official told the BSS.
Its Country Programming Mission (CPM) is an annual report that details planned lending and grants for Bangladesh over a year or multi-year period such as the 2023-2025 lending pipeline.
The Manila-based lender has prioritized five key areas-- climate-resilient development, energy efficiency, public-private partnerships (PPPs), social protection, and catalyzing structural reforms--to boost the country's economic development and private-sector growth.
The official said that in line with the country’s demands, the current ADB operations in Bangladesh focuses on infrastructures, energy, water resources, health, education, climate related issues alongside prioritizing on regional connectivity and corridor development.
He informed that apart from prioritizing on these issues, the multilateral development financier is also putting emphasis on job creation, poverty alleviation, regional integration, health sector digitization, skills development, capacity building, water resources management and river restoration in its future operations with Bangladesh.
Considering the country’s smooth graduation from the LDCs, the official said that the lending agency would also provide support in creating enabling environment for the country for ensuring smooth graduation.
The ERD official said apart from the CPM, a Tripartite Portfolio Review Meeting (TPRM) was also held recently which reviewed the progress of 15 ongoing ADB-funded projects here in Bangladesh.
The TPRM found that timeframe has reduced in the tendering process while the concerned agencies are also making in-depth preparations before signing financing agreements against different projects, said the official.
“We’re putting more focus on project readiness, identifying the areas which consume more time and thus expediting the implementation process,” he said, adding that the skills of the project directors are being developed side by side project steering committees and the project implementation committees are also being streamlined further.
The official informed that following request from the government, the ADB is conducting a study on the Teknaf to Tetulia corridor to facilitate the existing infrastructures considering the development of the growth centers along this corridor.
Besides, he informed that the lending agency has proposed the government to launch a Taka denominated bond. “We’re seeking opinions from the relevant agencies in this regard,” added the official.
In the current year, the government has so far signed 8 project agreements with the ADB worth $1.8 billion of which around $900 million came as budget support.
The ERD official said since Bangladesh would graduate to a developing nation from its LDC status in 2026, the lender emphasizes transition support for the country.
Its funding will meant for facilitating Bangladesh in regional integration, export diversification, boosting productivity through skilled manpower development as well as in infrastructure-development areas.
According to the proposed funding plans for 10 projects in 2026, the ADB is likely to lend $300 million for the second phase of the ongoing Dhaka-Sylhet 4-lane-road- development project under SASEC initiative, $115.8 million for Narayanganj Green and Resilient Urban Development Project, and $200 million for the Sustainable Energy Development and Empowering Communities in Chittagong Hill Tracts Project.
An ADB official told the latest TPRM that the bank’s proposed 2026 portfolio for Bangladesh is an interim arrangement as the country does not have any mid-to long-term development plan like the five-year development plan at this moment.
The ADB usually provides financial support for Bangladesh under its CPS. The current CPS (2021-2025) is going to end in 2025.
When asked about the formulation of the next CPS, the Finance Ministry official said that they would hold discussions with the ADB in this regard for setting the priorities in the next CPS.
He also informed that private sector cooperation would be enhanced in the coming years since the country is moving towards LDC graduation.
According to ERD data, the ADB, the second-largest multilateral development partner for Bangladesh, provided $2.52 billion in the last FY2024-25 and made commitments for $2.0 billion in assistance.
ADB is one of the largest multilateral development partners of Bangladesh. ADB’s current portfolio in Bangladesh stands at around $11.8 billion against 51 ongoing projects.
Since 1973, ADB has provided assistance to the country in sectors like power, energy, local government, transport, education, agriculture, health, water resources, governance etc. with a total of $33.951 billion loans and $571.2 million grants.
