The Government of Bangladesh has signed a $71 million loan agreement with the Asian Development Bank (ADB) for a climate-resilient water management project.
The loan will fund the "Climate-Resilient Integrated Southwest Project for Water Resources Management," to enhance socio-economic conditions through improved water resources management in Bangladesh.
The agreement was signed by Md Shahriar Kader Siddiky, secretary of the Economic Relations Divisiona at the Ministry of Finance, and Mr Edimon Ginting, country director of the ADB's Bangladesh Resident Mission.
The ceremony was attended by senior officials from both the Government of Bangladesh and ADB.
Scheduled to be implemented from January 2024 to December 2028, the project will be overseen by the Bangladesh Water Development Board under the Ministry of Water Resources.
Key objectives include increasing agricultural and fisheries development, implementing integrated water resources management, and establishing Water Management Organisations (WMOs) to ensure the sustainability of the benefits.
The project also aims to provide improved infrastructure and coordinated support services for sustainable development.
The loan, provided under ADB’s Ordinary Operations (Concessional), features a 25-year repayment term, including a 5-year grace period, with a fixed interest rate of 2%.
This financial package is part of ADB’s ongoing commitment to supporting Bangladesh’s priority sectors since the country joined the development bank in 1973.
To date, ADB has extended loans totalling US$ 31.5 billion and grants worth approximately US$ 571.2 million to Bangladesh, focusing on various sectors including power, energy, transport, education, agriculture, and health.
