ADB to provide $71m to Bangladesh for water resources management

In order to provide climate resilient water resources management, the government today signed a US$71 million loan agreement with the Asian Development Bank (ADB) dubbed “Loan 4440-BAN: Climate-Resilient Integrated Southwest Project for Water Resources Management”.

The loan agreement was signed on behalf of their respective parties by Edimon Ginting, country director of the Asian Development Bank’s Bangladesh Resident Mission, and Md. Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD).

According to a news statement from ERD, senior representatives from both the ADB and the government of Bangladesh were present at the signing event.

The Ministry of Water Resources’ Bangladesh Water Development Board will carry out the project.

Increasing agricultural, fisheries, and other related development through an improved drainage congestion system is one of the project’s goals. Other goals include implementing participatory water management plans and integrated water resources in the project area, providing coordinated support services and improved infrastructure for sustainable development, and establishing Water Management Organizations (WMOs) to sustain project benefits through strengthened institutional arrangements.

The project will be implemented from January 2024 to December 2028. The release said ADB Ordinary Operations (Concessional) loan is repayable in 25 years including 5 years grace period. Its interest rate is fixed two percent.

One of Bangladesh’s biggest multilateral development partners is ADB. Since Bangladesh joined the ADB in 1973, it has provided support to the areas of the economy that are of the utmost importance to the nation.

The entire amount of ADB’s loan to Bangladesh is $31547.47 million, whereas the total amount of grants is approximately US$571.2 million. Bangladesh’s electricity, energy, local government, transportation, education, agriculture, health, water resources, governance, and finance sectors are the primary areas of concentration for ADB’s development assistance.