The Asian Development Bank (ADB) has started preparing the multi-year lending programme for Bangladesh beginning next year with a major thrust on infrastructure.
Officials said the Manila-based lender is designing the country's loan operation for the period between 2010 and 2012, focussing on projects in the areas of energy, power generation, bridges and transportation.
"Financing power sector projects will be our top priority. But this time we'll not overlook the needs of the social sector," a senior official at the Economic Relations Division said Saturday.
"The more we get the better for us. You know, the country desperately needs huge cash to finance priority infrastructure projects, notably Padma Bridge. It will require more than $1.8 billion to implement the Padma bridge project alone," the official added.
The regional bank's proposed lending is seen as crucial as the country's efforts to secure aid from bi-laterals look uncertain, given the global economic landslide, which has made borrowing from the developed world difficult. Last year, the capital flows to emerging markets dived to $371 billion from $652 billion the year before, according to JP Morgan.
Officials and foreign aid experts say the crisis will throw countries like Bangladesh into the "overwhelming reliance" on multilateral lenders.
The regional bank remains a major financier of the country, offering an estimated some $500 million in 2008 financial year. In the last fiscal, the multilateral agency hannelled bulk of its aid to governance, food security and emergency cyclone supports.
In fiscal 2007, the Manila lender became the country's top donor, leapfrogging the World Bank, traditionally the biggest multilateral lender, doling out as much as $721 million.
Even though the amount of aid is still to be decided, ERD officials said the upcoming ADB lending programme would give priority to energy, electricity generation, railway reform and Padma Bridge financing.
No ADB officials were immediately available for comments.
The lender's loan commitment for 2008-2010 was US$2.5 billion to help Bangladesh implement scores of development projects, according to figures available with the ADB.
They said ADB will field a mission in April to have talks with government officials and the civil society on prioritising its lending programme, making it "more user-friendly."
The mission is expected to begin its work on April 19, which will continue until May 5. Officials said the draft country programming mission will be prepared by April 30.
"It's a huge exercise. The bank will launch talks with the government and other stakeholders on April 19," one ERD official said.
"Series of meetings are planned for drafting the lending plan. The initial exercise will take at least 15 days. They, we have been told, want to make the whole process participatory," the official added.
The bank will hold regional talks with the civil society, government officials, political parties, academics, and the media in divisional headquarters in Dhaka, Sylhet, Rajshahi, and Khulna.
Simultaneously, the Manila-based bank will conduct a mid-term review of its outgoing programme 2006-2010, according to the draft agenda.
"I think, the bank officials will realize the needs and priorities of Bangladesh. The infrastructure projects are in need of huge cash infusion. So ADB's help will be of critical importance," another ERD official told the FE.
"Bangladesh's economic growth might slow down further unless the country improves its infrastructure. Industrial production will ground to a halt unless power generation is boosted. We also need bridges and good infrastructure to drive growth," he added.
The Manila lender disbursed $5.69 billion in aid to the Bangladesh government until 2005-06 fiscal year against a commitment of $7.92 billion.
As of December 2007, the country, which became an ADB member in early 1970s, received more than $9.0 billion for 186 loans for 324 projects. It is also one of the largest recipients of loans under the Asian Development Fund (ADF), the bank's soft-lending arm.
