ADB targets $1.11b disbursement in 2026, strengthens portfolio oversight in Bangladesh
In 2026, an additional $245.6 million is projected for adjustment through cancellations and repurposing
Intense monitoring over the years resulted in steady progress in project implementation and portfolio management, leading to a gradual decline in cancellation and repurposing of Asian Development Bank (ADB)'s loans in Bangladesh – from $1 billion in 2024 to $450 million last year.
In 2026, an additional $245.6 million is projected for adjustment through cancellations and repurposing, according to a report presented at the Tripartite Portfolio Review Meeting on Asian Development Bank-funded projects that began yesterday (10 March) in Dhaka.
The report says in 2025, Bangladesh's portfolio of ADB projects saw improvements in both contract awards and disbursements compared to the previous year.
Contract awards reached $581.2 million, achieving 95.8% of the annual target of $611.3 million, while disbursements totalled $1.118 billion, or 82.5% of the target of $1.351 billion. The figures represent an overall increase in performance compared with 2024, reflecting progress in project implementation and portfolio management, it says.
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The lender identifies those projects for cancellation or repurposing which show limited progress despite concerted efforts for improvement.
The ongoing portfolio of the ADB in Bangladesh stood at $10.21 billion covering 48 projects across six sectors as of 15 February 2026, according to the latest portfolio review report.
About 71% of the total portfolio is concentrated in the transport, energy, and water and urban development sectors, which remain the main focus of ADB-supported investments in the country.
The report said Bangladesh's ADB portfolio had steadily expanded from $6.5 billion in 2015 to $13.8 billion in 2023, reflecting strong growth in development financing. However, the pace of expansion slowed after the political unrest in 2024, leading to a gradual decline in the active portfolio through 2025.
In 2025, ADB approved eight new projects worth about $1.67 billion in Bangladesh. Of these approved projects, two have already achieved contract awards covering at least 30% of their loan amounts, indicating early progress in project implementation.
The two-day review meeting is co-chaired by Md Shahriar Kader Siddiky, secretary of Economic Relations Division, Hoe Yun Jeong, country director of ADB's Bangladesh Resident Mission, and the regional head for operations coordination of ADB's South Asia Department. Officials from relevant line ministries as well as executing and implementing agencies are participating in the meeting.
Targets for 2026
The report also outlined several performance targets. The government and ADB aim to achieve 100% of the contract award and disbursement targets in 2026, with $939 million in contract awards and $1.1147 billion in disbursements.
The five-year trend shows that the share of projects facing risks rose to 12% in 2025, the highest level in the past five years. These risks are mainly attributed to weak government coordination, poor project management, and low project readiness. The target for 2026 is to reduce the risk level to 5%.
Procurement performance will also be closely monitored. End-to-end procurement time, a key performance indicator for project implementation, is targeted to be reduced by 10% in 2026 compared to the 2025 level.
The average procurement time for high-value contracts awarded last year was 485 days, highlighting opportunities for efficiency improvements.
Sector-wise data show that the energy and transport sectors recorded the longest procurement times, taking as high as 794 days in some cases.
For low-value contracts, average times gradually declined from 218 days in 2020 to 172 days in 2025, reflecting continued improvement in overall procurement efficiency.
Long procurement timelines in Bangladesh's ADB portfolio are mainly caused by inadequate project preparation, weak project design, poor-quality bid documents, and lengthy government approval processes, the report reveals, suggesting measures such as preparing realistic procurement timelines, engaging experienced consultants, and using advanced procurement.
Sectoral priorities
According to the ADB report, disbursement projections for 2026 indicate that the transport, energy, water, and urban sectors will drive the majority. Together, transport, energy, water, and urban development account for about 71% of the annual disbursement target.
The transport sector projects include the SASEC Dhaka-Northwest Corridor Road Project, the Flood Emergency Project, and the Dhaka-Sylhet Corridor Road Investment Project.
In the energy sector, key projects include the Rupsha 800MW Combined Cycle Power Plant Project, the Bangladesh Power System Enhancement and Efficiency Improvement Project, and the Dhaka Power System Expansion and Strengthening Project, which together account for about 64% of the sector's projected disbursements.
In the water and urban sector, major projects include the Improving Urban Governance and Infrastructure Programme, the Khulna sewerage project, and the Dhaka water supply project.
To optimise its portfolio, ADB's Business Resilience Management (BRM) framework will strengthen monitoring of loans with unutilised funds.
To enhance overall portfolio performance, ADB's local office is undertaking several initiatives, including strengthening portfolio monitoring through regular consultations, supporting capacity development for project implementation, and cleaning up the portfolio through cancellations or the repurposing of unutilised funds.
