ADB to provide $334m in loans, grants to Bangladesh for power, water supply, Rohingya infrastructure development
Under the Integrated Services and Livelihood for Displaced People from Myanmar and Host Communities Improvement Project, Bangladesh will receive a $58.6 million grant from the Asian Development Fund and a $28.1 million concessional loan.
The Asian Development Bank (ADB) and the government of Bangladesh today (29 September) signed three agreements involving over $334 million in loans and grants to strengthen power distribution in the northwest, expand water supply services in Khulna, and improve basic infrastructure for displaced people from Myanmar and host communities.
Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB country director for Bangladesh, signed the agreements on behalf of Bangladesh and the ADB, respectively, at a ceremony held at the ERD in Dhaka.
The $91 million Northwest Distribution Network Modernisation Project will enhance the quality, efficiency and resilience of the power distribution network in Rajshahi and Rangpur divisions, according to a press release.
It will integrate advanced smart technologies, reinforce climate-resilient infrastructure, install solar backup systems in critical facilities and shelters, and provide electricity-based livelihood opportunities for vulnerable communities, with a special focus on women and marginalised people in remote riverine islands.
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The project also includes the construction of new substations and switching stations, the modernisation of existing ones, and the installation of rooftop solar systems with battery storage.
Besides, a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and Pacific (JFPR), financed by the government of Japan, will strengthen disaster preparedness and resilience in flood-prone areas.
The Khulna Water Supply Project (Phase 2), supported by a $150 million loan and a $4 million grant, aims to expand piped water services to 1.78 million people in Khulna city.
The project will transition the city towards sustainable surface water use, addressing salinity during the dry season.
It will also adopt smart water supply management, expand supervisory control and data acquisition (SCADA) systems, and reduce non-revenue water. The accompanying technical assistance grant will support studies on artificial recharge and groundwater management.
Under the Integrated Services and Livelihood for Displaced People from Myanmar and Host Communities Improvement Project, Bangladesh will receive a $58.6 million grant from the Asian Development Fund and a $28.1 million concessional loan.
The initiative will expand access to water, sanitation, hygiene, energy and disaster resilience in Cox's Bazar and Bhasan Char, while enhancing social cohesion between displaced people and host communities.
Planned interventions include solar-powered streetlights, improved faecal sludge management, biogas production, nature-based drainage solutions, food distribution centres, cyclone shelters, mini piped water systems and road connectivity improvements.
"Through these initiatives, the ADB is supporting Bangladesh's priorities in advancing climate-resilient infrastructure, improving urban services and fostering inclusive development," said ADB Country Director Hoe Yun Jeong.
The projects will contribute to poverty reduction, disaster preparedness and long-term sustainability, he added.
Currently, Bangladesh hosts over 1 million displaced people from Myanmar, around 75% of whom are women and children, residing in 33 camps in Cox's Bazar, with more than 36,000 having been relocated to Bhasan Char.
