ADB funds $400m project for resilient development in Bangladesh
The Asian Development Bank (ADB) and the Government of Bangladesh signed a $400 million loan agreement today to support the second phase of the Climate-Resilient Inclusive Development Programme (CRIDP).
The programme aims to boost the country's resilience to climate impacts, reduce emissions, and promote inclusive development.
The agreement was signed in Dhaka by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB Country Director for Bangladesh.
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The $400 million loan from ADB will be complemented by nearly $113 million in cofinancing from the Agence Française de Développement (AFD) and $400 million from the Asian Infrastructure Investment Bank (AIIB).
"CRIDP addresses systemic challenges such as limited climate finance, fragmented institutional coordination, and low private sector participation," said ADB Country Director Hoe Yun Jeong. "It introduces comprehensive reforms that integrate policy, finance, infrastructure, and institutional capacity to secure climate-smart growth for future generations."
The programme will establish the Bangladesh Climate Development Partnership, a national platform to mobilise climate finance and support ministries in developing, implementing, and evaluating climate projects. It also introduces a framework for youth-focused and gender-responsive local adaptation, supporting a national disaster risk financing strategy that includes instruments such as crop insurance, disaster risk insurance, and contingent disaster financing.
Additionally, CRIDP supports updating the Strategic Transport Master Plan for Dhaka (2025–2034) and monitoring the renewable energy components of the Integrated Energy and Power Master Plan, contributing to low-carbon transport and clean energy development.
Bangladesh remains one of the most climate-vulnerable countries globally. Projections suggest the country could lose up to one-third of its GDP by 2070 under high-emissions scenarios. Already, tropical cyclones cause $1 billion in annual damages, and severe flooding could reduce economic growth by up to 9% by 2050. The climate crisis could also result in the loss of 17% of land and 30% of food production, with far-reaching consequences for food and nutrition security.
ADB reaffirmed its commitment to working with Bangladesh to address climate challenges through sustainable infrastructure, innovative finance, and strategic partnerships.
