ADB plans $2.5bn in project financing for Bangladesh in 2026

The Asian Development Bank (ADB) is preparing to provide around $2.5 billion in project financing for Bangladesh in 2026, reaffirming its strong partnership with the country through support for at least 10 major development initiatives, according to senior officials at the Ministry of Finance.

The Manila-based multilateral lender finalized the proposed funding plan during its recent Country Programming Mission (CPM) for 2026. In addition to the project pipeline, the ADB has also committed to keeping a ‘standby fund’ available to address emergencies or priority needs that may arise.

“The ADB has assured Bangladesh of providing about $2.5 billion for several development projects next year,” an official at the Economic Relations Division (ERD) told BSS.

The CPM, an annual planning exercise, outlines ADB’s lending and grant programs for member countries. For Bangladesh, the upcoming portfolio focuses on climate-resilient growth, energy efficiency, public-private partnerships (PPPs), social protection, and structural reforms aimed at boosting private-sector development.

Focus areas and future priorities

The ADB’s operations in Bangladesh continue to center on infrastructure, energy, water resources, education, health, and climate-related projects, while also emphasizing regional connectivity, corridor development, and job creation.

Looking ahead to Bangladesh’s graduation from Least Developed Country (LDC) status in 2026, the ADB intends to support a smooth transition by helping the country build a more competitive, private-sector-driven economy.

The lender is also assisting the government in areas such as poverty reduction, skills development, health sector digitization, capacity building, and river restoration, officials said.

Review of ongoing projects

A recent Tripartite Portfolio Review Meeting (TPRM) assessed 15 ongoing ADB-funded projects in Bangladesh, finding improved project readiness and shorter tendering timelines. The ERD official said project directors are receiving additional training, while implementation and steering committees are being strengthened to speed up execution.

At the government’s request, the ADB is conducting a study on the Teknaf–Tetulia corridor, aimed at enhancing infrastructure and economic activity along the route. The lender has also proposed launching a Taka-denominated bond to boost local financing options — a proposal currently under government review.

Key projects in the 2026 pipeline

• According to the tentative project list, ADB financing next year will likely include:
• $300 million for the second phase of the Dhaka–Sylhet Four-Lane Highway Project under the SASEC initiative;
• $115.8 million for the Narayanganj Green and Resilient Urban Development Project; and
• $200 million for the Sustainable Energy Development and Empowering Communities Project in the Chittagong Hill Tracts.

ADB officials described the 2026 program as an “interim arrangement”, since Bangladesh currently lacks a mid- or long-term national development plan following the completion of its latest five-year plan.

Strengthening the partnership

The current Country Partnership Strategy (CPS) between ADB and Bangladesh, covering 2021–2025, will end next year. Discussions are expected soon to set new priorities for the next CPS, with an emphasis on private-sector collaboration as Bangladesh transitions to developing country status.

In the current fiscal year, Bangladesh has already signed eight project agreements with the ADB worth $1.8 billion, including $900 million in budget support.

The ADB, Bangladesh’s second-largest multilateral development partner, provided $2.52 billion in funding in FY2024–25 and committed an additional $2 billion in new assistance. Its active portfolio currently stands at $11.8 billion across 51 ongoing projects.

Since beginning operations in Bangladesh in 1973, the ADB has provided about $33.95 billion in loans and $571.2 million in grants, supporting key sectors such as power, transport, education, agriculture, health, governance, and local government development.