Asian Development Bank (ADB) will increase public- and private-sector lending to $8 billion in five years to help Bangladesh strengthen trade links within the region.
The loan for 2016 through 2020 is also to support building infrastructure and skills needed for a strong, diversified economy.
ADB board of directors endorsed the loan under a five-year Country Partnership Strategy (CPS), according to a statement issued in Manila, Philippines today.
In the previous CPS period of 2011-2015, ADB lending to Bangladesh exceeded $5.0 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,” said Kazuhiko Higuchi, Country Director of ADB’s Bangladesh office.
The CPS adopts a broad-based approach to respond flexibly to the demand of the country, said the statement.
The CPS is expected to 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 would promote investment and growth in specific geographical areas to ensure a more integrated and higher impact.
ADB would 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 programme of assistance will be underpinned by gender mainstreaming; private sector mobilisation, especially through public-private partnerships; improved public finance management; and regional cooperation support.
To aid its operational expansion, ADB will also strengthen institutional capacity support at the project, sector, and country levels.