In 2027, the Asian Development Bank (ADB) is expected to invest a substantial sum of approximately $300 million in two projects in Bangladesh: city region development and water supply and sanitation in cluster towns. This is part of the ADB’s ongoing efforts to enhance the country’s towns and cities.
An Economic Relations Division (ERD) official told BSS that the Manila-based loan organization has a $150 million pipeline for 2027 against the Cluster Towns Water Supply and Sanitation Project.
The project is intended to be implemented in 22 coastal towns, with the Department of Public Health Engineering (DPHE) serving as the implementing agency.
The focus of the project is water supply system, sanitation, and solid waste management. A feasibility study is currently being conducted on the water supply and sanitation infrastructure across 22 coastal towns.
“This assessment includes evaluation of water sources, treatment facilities, distribution networks, and sanitation systems.” added the official.
Besides, the ADB also has a plan for providing another $150 million to Bangladesh in 2027 for the proposed Third City Region Development Project.
The implementing agency will be the Local Government Engineering Department (LGED). Based on stakeholder discussions and a multi-criteria analysis, the Mymensingh City Region (MCR) and Rajshahi City Region (RCR) were chosen to serve as economic counter-magnets under the third City Region Development Project (CRDP).
By providing sustainable urban drainage systems, including nature-based solutions, building civic and economic infrastructure, including roads, bus terminals, community markets, and wet markets, utilizing innovative financing instruments for enhanced sustainable MRM for infrastructure development, and enhancing municipal bodies’ capacity for climate and disaster resilience, participatory urban planning, and sustainable service delivery, the project will improve city and regional economic development strategies, according to the ERD official.
The project will support the preparation of comprehensive city region plans (CCRP) and associated development controls for MCR and RCR, incorporating additional thematic layers—such as regional connectivity to strengthen productivity linkages, economic planning for increased spillover effects, and natural capital management.
While talking to BSS in a tour to ADB-funded project sites at Patuakhali Pourashava and Chalna Pourashava under Khulna, ADB Country Director Hoe Yun Jeong said that actually the city region development scheme is underway.
“That is the second phase of the project.
But, we are already working with the LGED on the next phase of the city region development project.
However, we are still in talks with the government on the possible extent of the sub-projects and geographic areas that would be part of this third phase of the investment project,” he stated.
The ADB, Bangladesh’s second-largest multilateral development partner, committed to providing $2.0 billion in aid and contributed $2.52 billion in FY2024–25, according to ERD data.
One of Bangladesh’s biggest multilateral development partners is ADB. With 51 ongoing projects, ADB’s current portfolio in Bangladesh is valued at around $11.8 billion.
Since 1973, ADB has provided assistance to the country in sectors like power, energy, local government, transport, education, agriculture, health, water resources, governance etc. with a total of $33.951 billion loans and $571.2 million grants.
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