The proposed budget support aims to strengthen climate policies as part of government measures for pursuing sustainable development objectives.
As per the proposal, the first tranche of the credit is expected to be available by this year while the next tranche might arrive in next year and the final one in 2028, according to them.
The Energy Division, Power Division, Ministry of Housing and Public Works, and the Ministry of Agriculture would carry out some reforms under the climate policy-based budget support programme.
A mission of the AIIB is expected to visit Dhaka this month (September) to discuss the credit support programme and the reforms to be done throughout the three years, according to officials concerned.
Under the chalked-out plans, the Energy and Mineral Resources Division (EMRD) would establish a central oversight committee while the Bangladesh Petroleum Corporation (BPC) and its companies would form a supervisory committee.
On the other hand, the government will form an executive committee to evaluate the current Integrated Energy Policy, said officials.
Also, the policies will be taken to help reduce system loss and carbon emission in the natural gas sector, monitor system loss in gas distribution and billing irregularities, and install prepaid/EVC meters in residential and industrial sectors.
Moreover, the EMRD would form an oversight body to ensure clean energy development projects and lessen the over-reliance on fossil fuels, formulate policy on carbon detection in production to distribution channels.
Besides, the government will take programmes for planting trees and technology updates for carbon remission under the initiative.
A plan has been chalked-out also for the BPC to form an 'automation committee' to oversee oil sector automation to reduce manual operations and ensure fuel efficiency in distribution depots.
And the government will formulate policy or guidelines for an eco-friendly working environment, data integration, and system control of business operations.
Under the credit support programme, the ministry of agriculture will take various measures for reduction of carbon emission in farming, according to officials.
The Ministry of Housing and Public Works would take the necessary policy steps to make construction processes eco-friendly under this budget support programme, said the officials.
A senior official at the Finance Division told the FE that the AIIB has been extending financial support for advancing climate resilience and inclusive growth since its inception.
He said in the last fiscal year the AIIB also provided a significant amount as budget support to Bangladesh under its climate policy-based financing arrangement.
The official further said a team of the AIIB will arrive in Bangladesh in next month and the details of the budget support programme and the policy reforms would be finalised then.
syful-islam@outlook.com