Bangladesh signs $1.4bn loan deals with ADB for four projects

The government has signed agreements with the Asian Development Bank to secure $1.4 billion in loans for the implementation of four major development projects, according to a press release from the Ministry of Finance on Sunday, May 24.

The loan agreements were signed between the Economic Relations Division of the Ministry of Finance and the ADB at a hotel in the capital. Finance Minister Amir Khasru Mahmud Chowdhury and ADB President Masatsugu Asakawa were present at the signing ceremony.

The four projects are:

1. Strengthening Economic Management and Governance Programme (Subprogramme 2)
2. Second Strengthening Social Resilience Programme (Subprogramme 2)
3. SASEC Dhaka-Sylhet Corridor Road Project
4. Narayanganj Green and Resilient Urban Development Project

Due to political instability and other factors, implementation of development projects had slowed for over a year and a half. In the first 10 months of the current fiscal year, both disbursements and loan commitments from development partners declined.

According to ERD data, foreign disbursements from July to April stood at $4.2362 billion, down 18 per cent from $5.1634 billion during the same period last year. Foreign loan commitments fell to $2.80 billion, a drop of over 34 per cent from $4.25 billion the previous year.

Against this backdrop, the finance minister described the ADB's large loan agreement as a sign of normalisation in the financing situation.

Speaking at the ceremony, Finance Minister Amir Khasru Mahmud Chowdhury said the ADB's swift and timely economic response and financing amid the adverse situation created by the recent Middle East war would play a crucial role in implementing the country's development plans.

He also said the ADB president will meet Prime Minister Tarique Rahman on Monday, May 25, when integrated development projects will be announced.