The Asian Development Bank (ADB) and the Bangladesh government on Monday signed three financing agreements worth over $331 million to boost climate-resilient infrastructure, improve public services, and support vulnerable communities across the country.
The agreements include support for improved water supply in Khulna, power grid modernization in the northwest, and critical services for displaced people from Myanmar and host communities.
The agreements were signed at the Economic Relations Division (ERD) office in Dhaka by Md. Shahriar Kader Siddiky, secretary of the ERD, and Hoe Yun Jeong, ADB Country Director for Bangladesh.
“This comprehensive package reflects ADB’s continued partnership with Bangladesh to deliver inclusive, sustainable, and climate-resilient growth,” said Jeong. “From urban water supply and energy access to humanitarian support for displaced people, these projects are designed to improve the quality of life for millions—especially the underserved and vulnerable.”
$150 Million for Safe and Sustainable Water in Khulna
To address water scarcity and salinity in southern Bangladesh, ADB will provide a $150 million loan and a $4 million grant to expand piped water supply in Khulna city, benefiting an estimated 1.78 million residents.
The Khulna Water Supply Project (Phase 2) will transition the city to surface water sources and implement climate-resilient technologies, including smart water management systems, SCADA, and district metering areas to reduce water loss.
The project will also strengthen the capacity of the Khulna Water Supply and Sewerage Authority (KWASA).
$91 Million to Modernize Power Distribution in Northwest Bangladesh
In the northwest regions of Rajshahi and Rangpur, ADB has committed a $91 million loan to upgrade power distribution infrastructure under the Northwest Distribution Network Modernization Project.
The initiative aims to enhance efficiency, resilience, and disaster preparedness by integrating smart technologies, constructing new substations and switching stations, and introducing solar-powered backup systems at emergency shelters and control centers.
A $2 million grant from ADB’s Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) will further support disaster resilience and livelihood development in remote, flood-prone communities, especially for women and marginalized populations.
$58.6 Million Grant and $28.1 Million Loan to Support Displaced People
ADB is also responding to the protracted humanitarian crisis in Cox’s Bazar and Bhasan Char by providing a $58.6 million grant from the Asian Development Fund (ADF) and a $28.1 million concessional loan.
The funds will improve basic infrastructure and critical services for over 1 million displaced people from Myanmar and host communities through the Integrated Services and Livelihood Improvement Project.
Planned interventions include solar streetlights, biogas systems, drainage rehabilitation, and food distribution centers in the camps, as well as multi-purpose cyclone shelters, mini piped water systems, and road improvements in surrounding host communities.
The project is designed with a strong focus on gender inclusion, climate resilience, and social cohesion.
With these agreements, ADB continues to play a transformative role in supporting Bangladesh’s development agenda—promoting sustainable growth, bridging regional disparities, and ensuring that no one is left behind.