The Asian Development Bank (ADB) has outlined plans to provide budget support and substantial project financing over the next three years to facilitate Bangladesh’s smooth transition out of the least-developed country category. ADB Country Director, Edimon Ginting, announced these plans, stating, “We aim to provide at least $3 billion next year and an average of $3 billion annually for the next three years to support Bangladesh.” He made this statement following a meeting with Planning Minister M A Mannan in Dhaka.
For the current year, ADB has prepared to approve $2 billion in concessional loans, which will include financing for vaccine manufacturing. Additionally, they plan to authorize nearly $1.5 billion in soft-term loans. The planning ministry noted that these figures represent ADB’s indicative plan, with the possibility of providing more financing if the government effectively utilizes the funds.
This year, ADB has already granted $800 million in policy-based loans as budget support, and it is expected to approve another $400 million in budget support in November, according to a ministry official.
The meeting with Mr. Mannan was centered on discussions about Bangladesh’s vaccine manufacturing project. ADB intends to offer $338 million for the project, with 50% of the amount in concessional loans and the remaining portion in non-concessional loans, featuring a 2% interest rate for the concessional portion.
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