The Daily Corporate Desk
Dhaka, 7 October 2026:
Bangladesh has signed financing agreements with the Asian Development Bank (ADB) worth a combined $275 million, alongside a $2.72 million grant, to expand affordable housing finance and improve electricity access and infrastructure resilience in the Chattogram Hill Tracts.
The agreements were signed on Wednesday by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) under the Ministry of Finance, and Qingfeng Zhang, Country Director of ADB’s Bangladesh Resident Mission. ADB Executive Director Satya Srinivas Lolla and senior government and ADB officials attended the signing ceremony.
$100m for affordable housing
Under the first agreement, ADB will provide $100 million for the Inclusive Affordable Housing Finance Project, which will be implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance.
The project is designed to expand access to affordable and climate-resilient housing finance for low- and middle-income households. It will also strengthen housing microfinance services and support greater economic participation by women.
According to the agreement, the $100 million loan carries an interest rate of 2% per year and will be repayable over 25 years, including a five-year grace period.
$175m to strengthen electricity access in CHT
The second agreement involves a $175 million ADB loan for the Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project.
The Bangladesh Power Development Board (BPDB), under the Power Division, will implement the project.
The initiative aims to improve electricity distribution in remote and underserved communities across the Chattogram Hill Tracts by expanding and modernising distribution networks and making power infrastructure more resilient to climate-related risks.
The project is also expected to create greater opportunities for electricity-dependent economic activities in the region.
The $175 million loan will carry the same 2% annual interest rate and will be repayable over 25 years, including a five-year grace period.
Additional $2.72m grant
Alongside the loan, ADB will provide a $2.72 million grant for the Chattogram Hill Tracts energy project.
The grant will come from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), an externally financed fund administered by ADB.
ADB financing in Bangladesh
ADB has been supporting Bangladesh since the country became a member of the development institution in 1973.
To date, ADB has provided Bangladesh with approximately $36.69 billion in loans and $636.52 million in grants, with its development assistance covering sectors including power and energy, transport, local government, education, agriculture, healthcare, water resources, governance and financial services.
The latest financing package places a combined focus on affordable housing, financial inclusion, reliable electricity and climate-resilient infrastructure, particularly for communities with limited access to essential services.
