Dhaka, Oct 8, 2025 : The Asian Development Bank (ADB) is set to extend around $2.5 billion in development assistance to Bangladesh in 2026, reaffirming its strong partnership with the country. The funds will support at least 10 major projects, alongside a standby fund for emergency or priority needs.
According to officials from the Ministry of Finance and Economic Relations Division (ERD), the financing plan was nearly finalised during ADB’s Country Programming Mission (CPM) for 2026, which concluded last week.
The Manila-based lender has identified five key priority areas for its operations in Bangladesh: climate-resilient development, energy efficiency, public-private partnerships (PPPs), social protection, and structural reforms. ADB’s ongoing operations also emphasise infrastructure, energy, water resources, education, health, climate adaptation, regional connectivity, and corridor development.
An ERD official said ADB is placing additional focus on job creation, poverty reduction, skills development, health sector digitisation, water resource management, and river restoration, while also assisting Bangladesh’s smooth graduation from LDC status in 2026 by supporting a more enabling business environment.
During a recent Tripartite Portfolio Review Meeting (TPRM), progress on 15 ongoing ADB-funded projects was reviewed. The meeting found that project readiness and tendering timelines have improved, with agencies becoming more efficient in pre-implementation activities.
The ADB is also conducting a study on the Teknaf–Tetulia corridor to assess infrastructure development and growth potential along the route. In addition, the bank has proposed that Bangladesh launch a Taka-denominated bond, with government agencies now reviewing the idea.
So far this year, Bangladesh has signed eight project agreements worth $1.8 billion with ADB, including $900 million in budget support.
Under the proposed 2026 funding plan, ADB is expected to provide:
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$300 million for the second phase of the Dhaka–Sylhet four-lane road project (SASEC initiative)
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$115.8 million for the Narayanganj Green and Resilient Urban Development Project
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$200 million for the Sustainable Energy Development and Empowering Communities Project in the Chittagong Hill Tracts
An ADB official noted that the 2026 portfolio is an interim arrangement, as Bangladesh currently lacks a mid- to long-term national development plan following the completion of the ongoing Country Partnership Strategy (CPS) 2021–2025.
The Finance Ministry said discussions with ADB will soon begin to define priorities for the next CPS. The government also aims to increase private-sector cooperation as Bangladesh transitions to developing-nation status.
According to ERD data, ADB — the second-largest multilateral development partner of Bangladesh — provided $2.52 billion in FY2024–25 and committed an additional $2 billion in assistance.
ADB’s current portfolio in Bangladesh stands at $11.8 billion across 51 active projects. Since 1973, it has provided a total of $33.95 billion in loans and $571.2 million in grants, supporting sectors including energy, transport, education, agriculture, local government, and health.
