ADB to boost lending by $8 billion under new partnership with Bangldesh

The Asian Development Bank (ADB) will increase public and private sector lending to Bangladesh to $8 billion in the next five years.

The Bangladesh Country Partnership Strategy (CPS) for 2016-2020, endorsed by the ADB Board of Directors, envisages an enhanced partnership between Bangladesh and the ADB, the Manila-based lender said in a statement on Thursday.

The new funding will help Bangladesh “building infrastructure and skills needed for a strong, diversified economy and to strengthen trade links within the region.”

In the previous CPS period of 2011-2015, ADB lending to Bangladesh exceeded $5 billion.

“Our new CPS is aligned with the government’s goals of creating new sources of growth, generating employment, and supporting rural development for regionally balanced growth,” Kazuhiko Higuchi, Country Director of ADB’s Bangladesh office, was quoted as saying in the statement.

The CPS adopts a broad-based approach in order to respond flexibly to the demand of the country.

Based on ADB’s core strengths, the CPS will help ease infrastructure constraints, boost human capital, promote economic corridor development, improve rural livelihoods, and provide climate- and disaster-resilient infrastructure and services.

The CPS will promote investment and growth in specific geographical areas to ensure a more integrated and higher impact, the ADB said.

It will help the development of economic corridors to position Bangladesh well in regional and global value chains.

The CPS supports further development of the Dhaka-Chittagong industrial artery, extending to Cox’s Bazar in the southeastern part of the country, and development of the southwest economic corridor from Dhaka.

In coming years, ADB proposes to support major railway and road network capacity improvement; Chittagong port development; urban transport in Dhaka; power generation, transmission, and distribution; energy transmission, including regional energy trade; renewable energy development; water and urban services nationwide; water resources management and flood control; climate-resilient rural infrastructure; education and skills development; and access to finance.

ADB’s program of assistance will be underpinned by gender mainstreaming; private sector mobilisation, especially through public-private partnerships; improved public finance management; and regional cooperation support.

ADB’s knowledge products and services will provide analytical bases for developing operational activities.

To aid its operational expansion, ADB will also strengthen institutional capacity support at the project, sector, and country levels.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region.

It is owned by 67 members – 48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.