ADB
ADB approves $400mn loan to Bangladesh to enhance revenues, reforms, help small businesses
The Asian Development Bank (ADB) on Tuesday (June 14, 2023) approved a $400 million loan to Bangladesh to advance reforms in domestic resource mobilization, improve efficiency and productivity of public spending, and help small businesses – especially women-led businesses – to access low-cost innovative bank financing.
This loan is ADB’s second subprogram of the Sustainable Economic Recovery Program that was launched in October 2021 to support economic recovery after the COVID-19 pandemic.
“This subprogram enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector,” said ADB Principal Public Management Economist for South Asia, Aminur Rahman.
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“The subprogram, with a strong focus on gender, climate change, and digitization, enables the government to strengthen its efforts to support income generation for the poor and vulnerable,” he added.
The program will enhance income tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net.
Transparency and efficiency in public procurement will be enhanced through strengthening electronic procurement and electronic payment systems, while approval of public projects will be facilitated through the newly launched digital system of public project appraisal and approval process, according to ADB.
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The new package supports the launch of innovative financing services by Bangladesh Bank through commercial banks to provide low-cost microcredit using digital channels and e-wallet.
It facilitates bank lending to marginalized and landless farmers, small traders, and low-income earners. Micro and small businesses and women entrepreneurs who do not possess land or property will also be able to access finance based on their trade receipts and other forms of nonfixed collaterals, such as small equipment and machinery.
Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program.
Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program.
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Coastal Towns Climate Resilience: ADB approves $250 mn for Bangladesh
The Asian Development Bank (ADB) and the government of Bangladesh have signed agreements for $250 million in loans to strengthen climate and disaster resilience in 22 coastal towns in Bangladesh.
Sharifa Khan, Secretary, Economic Relations Division, and Jiangbo Ning, Deputy Country Director, ADB, signed the agreements on behalf of Bangladesh and ADB, respectively on Monday.
“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.
Read more: ADB to fund urban transport, climate resilience, renewables projects worth $628 million
“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.
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.
Read more: Bangladesh mandates ADB to advise on $400million expressway connecting 10 economic zones
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 to fund urban transport, climate resilience, renewables projects worth $628 million
Asian Development Bank (ADB) is funding USD $628.29 million to implement 'Greater Dhaka Sustainable Urban Transport (BRT- Gazipur), 'Coastal Towns Climate Resilience and Third Public-Private Infrastructure Development Facility.
A loan agreement was signed between the Economic Relations Division (ERD) and ADB in this regard in Dhaka on Monday.
ERD secretary Sharifa Khan and Jiangbo Ning, Deputy Country Director and Officer-In-Charge, of Bangladesh Resident Mission, signed the deed documents on behalf of their respective side.
Greater Dhaka Sustainable Urban Transport Project (BRT- Gazipur) will be executed by the Road Transport and Highways Division and implemented by the Roads and Highways Department (RHD), Bangladesh Bridge Authority (BBA), and Local Government Engineering Department (LGED).
The objective of the project is to improve the quality of urban life in the Gazipur-Tongi area, establishing an efficient, sustainable, environment-friendly, affordable, and safe urban transport system through the construction of a 20.50 km long Bus Rapid System from Gazipur to the Airport.
ADB will provide an additional $100 million ordinary operations (Regular) loan which is repayable in 25 years with a grace period of 5 years.
Coastal Towns Climate Resilience Project will be executed by LGED under the local government division. The objective of the project is to strengthen climate and disaster resilience of the selected coastal towns at risk and improve the quality of life of women and poor in the locality.
15 Pourashovas from 6 districts of Barisal division, 5 Pourashovas from 3 districts of Khulna division, and 2 Pourashovas of Shariatpur district of Dhaka division are covered by this project. The estimated completion date of the project is 30 June 2029.
ADB's $250 million support for this project includes a $150 million ordinary operations (Concessional) loan, a $96 million regular loan, and $4 million grants. The loan is repayable in 25 years with a grace period of 5 years.
Read more: Bangladesh signs $200 million loan deal with ADB to boost micro-enterprise
The interest rate on concessional loans is 2 percent fixed. OCR (regular) loan interest rate is SOFR (Secured Overnight Financing Rate) + 0.50 percent, including maturity premium at the rate of 0.10 percent and commitment charge at the rate of 0.15 percent on undisbursed amount.
Third Public-Private Infrastructure Development Facility-2 will be implemented by Infrastructure Development Company Limited (IDCOL) to invest in infrastructure projects developed under the Public-Private Partnership (PPP) model.
Estimated completion date of the project is June 2027. The ADB loan for this project has two components- $262.29 million ordinary operations (Regular) and $16 million ordinary operations (Concessional) that will support investment in energy efficiency and renewable energy solutions. Both loans have a repayment period of 25 years, including a 5 year grace period.
Since 1973, ADB has been one of the largest multilateral development partners of Bangladesh extending development assistance to the country. ADB's total loan to Bangladesh till now is more than $27.844 billion and the total grant is about $0.541 billion.
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Bangladesh signs $200 million loan deal with ADB to boost micro-enterprise
A loan agreement of USD $200 million along with a project agreement for micro-enterprise financing and credit enhancement project was signed on Tuesday between the government and Asian Development Bank (ADB).
Sharifa Khan, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, Country Director, of Bangladesh Resident Mission signed at loan document on behalf of the respective sides.
Dr. Nomita Halder, Managing Director, PKSF, and Edimon Ginting, Country Director, Bangladesh Resident Mission, signed the project agreement separately.
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The project will be executed by the Financial Institutions Division and implemented by Palli Karma-Sahayak Foundation (PKSF) to increase financing for micro-enterprises.
Soft loans will be provided to small entrepreneurs (especially women), which in turn, will improve women's economic empowerment. The estimated completion date of the project is 31 December 2027.
ADB's total loan to Bangladesh till now is more than $ 27.22 billion and the total grant is about $ 0.537 billion.
Read more: ADB to invest $2 billion over next 3 years in Bangladesh’s education sector
ADB to invest $2 billion over next 3 years in Bangladesh’s education sector
Asian Development Bank (ADB) President Masatsugu Asakawa has told Education Minister Dr. Dipu Moni that ADB will invest 2 billion dollars in the next 3 years in Bangladesh’s education sector.
Dr. Dipu Moni held a meeting with Masatsugu Asakawa on November 25, 2022 at the ADB office. During the meeting, the education minister and the ADB president discussed the ongoing projects in the education sector of Bangladesh funded by the ADB.
They also discussed future projects to be funded by the ADB in the education sector of Bangladesh. Earlier, Dipu Moni joined a seminar on “How to Recover Learning Losses from COVID-19 School Closures”, organised by ADB and also discussions on “IFFEd (International Finance Facility for Education) initiative and ADB Education Sector Directional Guide” and “Strategic Thrusts for Bangladesh Education Sector Operation” with the officials of ADB on November 24, according to a press release.
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Dipu Moni thanked ADB for its substantial support to Bangladesh during COVID-19, particularly for providing budget support and financing vaccine procurement. She highlighted Bangladesh’s achievements in development, its graduation from LDC status and plans to become a developed country under the visionary leadership of Prime Minister Sheikh Hasina. She told the ADB president that the Government of Bangladesh gives highest priority to education. While acknowledging ADB’s contribution, Dipu Moni solicited further support of ADB to Bangladesh’s education sector, particularly in ICT and technical education in Bangladesh.
She requested for extended finance from International Finance Facility for Education (IFFEd) for which ADB is an implementing partner. She also mentioned that the Government of Bangladesh is implementing huge stimulus programmes worth 6.23% of GDP to improve the livelihood of vulnerable people, recovering from the COVID-19 fallout. She said that the Russia-Ukraine war has put more pressure on the economy because of rise in fuel, fertilizer and food prices. He urged for ADB’s support to Bangladesh with countercyclical support facility that the country has requested for.
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ADB President Masatsugu Asakawa welcomed the education minister and congratulated her for receiving Gusi Peace Prize. He praised the progress and achievements of Bangladesh, particularly in social sector, female education and women’s empowerment. The ADB president emphasized equitable access of all children to quality education, harnessing the technology shift in the education sector and addressing the climate change in the development. He also mentioned the importance of increasing the domestic resources. He congratulated the Education Minister Dr. Dipu Moni for being champion on International Finance Facility for Education (IFFEd) and said that ADB will invest 2 billion dollars in the next 3 years in education sector in Bangladesh. He assured all support and said that cooperation between Bangladesh and ADB will be strengthened.
Dr. Dipu Moni invited him on behalf of the government to visit Bangladesh soon and see the massive development that is happening under the dynamic leadership of Sheikh Hasina and the ADB President accepted her invitation and said that he would be visiting Bangladesh in 2023.
UN, ADB to support Bangladesh's fight against climate change
The United Nations and Asian Development Bank (ADB) will provide all necessary assistance to Bangladesh to combat climate change, including the implementation of Bangladesh's National Adaptation Plan (NAP).
United Nations Resident Coordinator in Bangladesh Gwyn Lewis and Asian Development Bank (ADB) Country Representative Edimon Ginting said this in two separate meetings with Environment, Forest and Climate Change Minister Md Shahab Uddin at the secretariat on Tuesday.
The minister said, Bangladesh needs 230 billion US dollars until 2030 to implement the National Adaptation Plan.
Read more: Bangladesh a key player in fight against climate change, says British envoy
"We expect cooperation from international organizations like the United Nations and ADB," were his final words.
The minister said that a specific financing mechanism must be determined for the most vulnerable countries. In this regard, the 8.8 to 9.9 trillion US dollars required for developing countries by 2030 should be taken into consideration. He also said that the global community must work together to reduce greenhouse gas emissions by 45 percent by 2030 to save the planet.
Gwyn Lewis expressed his special interest in helping climate refugees as a result of climate change.
Bangladesh is a role model in the world in dealing with climate change, said Edimon Ginting, country representative of ADB.
Read more: "Bangladesh should not have to carry the burden of climate change alone"
Various programs undertaken by Bangladesh are followed by other countries of the world. ADB is assisting Bangladesh in various projects and it will financially help the projects' proposal to address climate risk if the government sends, he added.
Secretary of the Ministry of Environment, Forest and Climate Change in the meeting Dr. Farhina Ahmed, Additional Secretary (Administration) Iqbal Abdullah Harun, Additional Secretary (Development) Mizanul Hoque Chowdhury, Joint Secretary Zakia Afroz, ADB Country Specialist Soon Chang Hong, ADB External Affairs Team Leader Gobinda Bar and other senior officials of the Ministry were also present at the meeting.
Sewerage: Dhaka, Tokyo launch partnership for improved services
To promote improved sewerage services in Bangladesh, the Asian Development Bank (ADB) has helped launch a new partnership between Dhaka Water Supply and Sewerage Authority (DWASA) and the Bureau of Sewerage of Tokyo Metropolitan of Japan.
The ADB facilitated a high-level dialogue between Bangladesh and Japan. The dialogue, led by Bangladesh's LGRD Minister Md Tazul Islam, took place during October 3-6 in Tokyo. It included meetings with the governor of Tokyo and the minister of land, infrastructure, transport and tourism of Japan to discuss broader cooperation in the sewerage sector.
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A memorandum of understanding (MoU) was signed by DWASA and the Bureau of Sewerage of the Tokyo Metropolitan government to start a one-year cooperation programme under Water Organizations Partnership for Resilience, said a media statement.
According to the agreement, cooperation activities will be implemented in the areas of smart and resilient sewerage services with a focus on the efficient energy plan, climate change adaptation and mitigation, efficient operation and maintenance, sludge management, and compact sewerage treatment plants.
The activities will also aim to transfer best practices, expertise, and technology through peer-to-peer exchanges between D
Bangladesh has one of the lowest debt-to-GDP ratios: Finance Minister tells ADB
Finance Minister AHM Mustafa Kamal has said that Bangladesh has one of the lowest debt-to-GDP ratios in the world.
He said Bangladesh has never failed to pay domestic and foreign debt.
Kamal said this while attending the annual meeting at the Asian Development Bank (ADB) headquarters in Manila on Tuesday, according to a press release of the finance ministry.
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The finance minister also attended a bilateral meeting with president of ADB, Masatsugu Asakawa.
The finance minister said that currently, the cumulative financing of ADB in Bangladesh stands at $27.6 billion. Out of this, total outstanding amount is $11.69 billion.
Kamal thanked ADB's assistance in developing member countries, including Bangladesh, in recovering from economic and health crises in Asia and the Pacific region by providing quick support for procuring Covid-19 vaccine.
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It is very important that the Bangladesh-ADB Country Partnership Strategy (2021-2025) is aligned with Bangladesh's national development goals.
The finance minister expected $12-15 billion in loan support from ADB over the next five years, which is crucial for Bangladesh’s achieving development milestones.
ADB to help govt recover losses from flood
The Asian Development Bank (ADB) has assured the government to provide all sorts of cooperation to help recoup the losses from the recent flood across Bangladesh including Sylhet.
Edimon Ginting, country director of ADB, made the assurance during a courtesy call on LGRD Minister Md Tajul Islam at the latter’s office on Thursday.
In the meeting, the minister briefed the country director about the damages, including roads, bridges, culverts, water, and sanitation system due to the flood and various measures taken by the government to recover the losses as early as possible.
He said ADB always stands beside Bangladesh with help to build rural infrastructures, and in many sectors including water resources, agriculture, education, transport, and fuel.
The minister thanked the regional money lender for its positive role to achieve the sustainable development goals of the country.
In response, Edimon Ginting has expressed his keen interest to work with the government on a rehabilitation programme in flood-affected areas.
Mentioning that Prime Minister Sheikh Hasina has been working relentlessly to build a developed country within 2041, Ginting said Bangladesh has become a role model of development in the world.
ADB gives $41.4 mln in grant to help improve infrastructure, manage the basic needs of Rohingyas
Bangladesh and Asian Development Bank (ADB) on Wednesday signed an agreement for $41.4 million in grant to help improve infrastructure and manage the basic needs of displaced persons from Myanmar sheltered in Cox’s Bazar in Bangladesh.
The additional assistance forms the second phase of the ADB’s ongoing Emergency Assistance Project worth $100 million in grant approved in 2018, according to a release from the ADB.
Economic Relations Division Secretary Fatima Yasmin and ADB Country Director Edimon Ginting signed the agreement on behalf of Bangladesh and ADB, respectively.
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“The assistance will scale up the ongoing project by addressing the unmet basic and urgent needs identified for ADB assistance in 2018 but which remained unfunded due to grant funding constraints,” ADB Country Director Edimon Ginting said.
He said that Disaster shelter centers, health facilities, improved water supply and sanitation, and better waste management that will be provided with ADB assistance, will reduce disaster risks, strengthen the resilience against COVID-19, and serve basic human needs of the camp population until their repatriation.
The new assistance will build 200 water and sanitation facilities, three solid waste management facilities, and establish a piped water supply system at Ukhiya.
It will, among others, upgrade four health care facilities for severe acute respiratory infection, expand six primary health care and diagnostic centers in Teknaf, improve skills of health care workers in Cox’s Bazar district, and construct a multipurpose disaster-resilient isolation center to help with the COVID-19 response.
To strengthen disaster resilience and help protect displaced persons, six school-cum-cyclone shelters in local primary schools, and one multipurpose cyclone shelter, which will also function as a COVID-19 isolation center, will be constructed. About 13 kilometers (km) of rural access roads leading to the camp facilities will be upgraded.
In addition to the new grant assistance, an agreement was also signed today for a $30 million concessional loan to rehabilitate a 30.76 km section of National Highway-1 to improve the transportation of relief and essential goods between Teknaf and Cox’s Bazar.