ADB to fund $300m in 2 projects in water supply, sanitation & city region development

The Asian Development Bank (ADB) is likely to come up with a hefty amount of around $300 million in two projects in Bangladesh in 2027, in the cluster towns water supply and sanitation and in city region development as part of its continued efforts to improve the amenities in the towns and cities of the country.

Talking to BSS, an official at the Economic Relations Division (ERD) said that the Manila-based lending agency has a pipeline of $150 million for 2027 against the Cluster Towns Water Supply and Sanitation Project.

The Department of Public Health Engineering (DPHE) is designated as the executing agency for the project, which is planned for implementation in 22 coastal towns. 

The focus of the project is water supply system, sanitation, and solid waste management. A feasibility study is currently being conducted on the water supply and sanitation infrastructure across 22 coastal towns.

 "This assessment includes evaluation of water sources, treatment facilities, distribution networks, and sanitation systems," added the official.

Besides, the ADB also has a plan for providing another $150 million to Bangladesh in 2027 for the proposed Third City Region Development Project.

The Local Government Engineering Department (LGED) will be the executing agency. Mymensingh City Region (MCR) and Rajshahi City Region (RCR) were selected based on multi-criteria analysis and stakeholders' consultations to be developed as economic counter-magnets under the third City Region Development Project (CRDP). 

The ERD official said the project will enhance city and regional economic development strategies by provision of sustainable urban drainage systems, including nature-based solutions;  development of civic and economic infrastructure, such as roads, bus terminals, community markets and wet markets;  leveraging innovative financing instruments for enhanced sustainable MRM for infrastructure development; and capacity building of municipal bodies for climate and disaster resilience, participatory urban planning, and sustainable service delivery. 

The project will support the preparation of comprehensive city region plans (CCRP) and associated development controls for MCR and RCR, incorporating additional thematic layers—such as regional connectivity to strengthen productivity linkages, economic planning for increased spillover effects, and natural capital management. 

While talking to BSS in a tour to ADB-funded project sites at Patuakhali Pourashava and Chalna Pourashava under Khulna, ADB Country Director Hoe Yun Jeong said that actually the city region development scheme is underway. That is the second phase of the project.

 But we are already working with the LGED on the next phase of the city region development project.

 But, we are still in discussion with the government on the potential scope in terms of the geographical areas and the sub-projects to be included in this third phase of the investment project," he said. 

According to ERD data, the ADB, the second-largest multilateral development partner for Bangladesh, provided $2.52 billion in the last FY2024-25 and made commitments for $2.0 billion in assistance.

ADB is one of the largest multilateral development partners of Bangladesh. ADB's current portfolio in Bangladesh stands at around $11.8 billion against 51 ongoing projects.

Since 1973, ADB has provided assistance to the country in sectors like power, energy, local government, transport, education, agriculture, health, water resources, governance, etc., with a total of $33.951 billion loans and $571.2 million grants.