LGD's Tk 30.5b project aims to transform urban living


JAHIDUL ISLAM | Published: June 05, 2026 00:09:33


LGD's Tk 30.5b project aims to transform urban living


The Local Government Division (LGD) proposes a Tk 30.50-billion scheme aimed at strengthening climate-resilient infrastructure, governance, service delivery, and employment-generating skills development in urban areas across Bangladesh.
The project, titled "Scaling Urban Resilience and Governance Programme for Inclusive and Liveable Cities", will be implemented in up to 100 city corporations and municipalities selected on the basis of climate risk, poverty levels, and migration pressures.
The LGD recently submitted the Preliminary Development Project Proposal (PDPP) to the Planning Commission to initiate the appraisal process, following its inclusion in the list of unapproved new projects under the upcoming Annual Development Programme (ADP), sources say.
The five-year project is designed to address rising climate vulnerabilities, rapid urbanisation, migration pressures, and widening infrastructure gaps in secondary cities and municipalities, reveals the PDPP.
The project places a strong emphasis on poverty reduction and livelihood improvement through social protection measures and the creation of income-generating opportunities for an estimated 15 million urban poor, supported by skills development and entrepreneurship promotion, adds the PDPP.
Officials say discussions are going on with major development partners, including the World Bank (WB), Asian Development Bank (ADB), and United Nations Development Programme (UNDP), to mobilise potential external financing support worth $250 million for the project.
The initiative reflects a significant policy shift towards integrated urban resilience planning in Bangladesh, combining climate adaptation, poverty reduction, and governance reform within a single framework, says Dr Mustafa K Mujeri, former director general at the Bangladesh Institute of Development Studies (BIDS).
However, he cautions that the success of the initiative will largely depend on implementation capacity at the municipal level, where institutional weaknesses, limited planning autonomy, and manpower constraints remain persistent challenges.
"Given the scale of the programme relative to Bangladesh's urban development financing landscape, effective donor coordination and results-based implementation frameworks will be essential to avoid fragmentation," he tells The Financial Express.
Under the proposal, the largest allocation of Tk 10.68 billion has been earmarked for climate-resilient and affordable housing for low-income groups, along with associated community facilities.
The intervention will support the development of affordable housing and related community infrastructure in up to 20 cities across the country.
Another Tk 4.58 billion has been proposed for social protection and livelihood programmes targeting an estimated 15 million urban poor, with an emphasis on skills development, youth employment, and women's economic empowerment.
A sum of Tk 6.1 billion would be spent on climate-resilient urban infrastructure, including drainage systems, urban roads, water supply, sanitation facilities, Nature-based Solutions (NbS), and Locally Led Adaptation (LLA) interventions in selected municipalities and city corporations.
The project also assigns Tk 3.05 billion for participatory urban governance through Community Development Committees (CDCs) and improved municipal planning and budgeting systems.
A further Tk 2.14 billion will support digital transformation through smart governance tools, integrated data platforms, and innovation pilots aimed at improving service delivery and transparency in urban management.
In addition, Tk 1.53 billion has been allocated for institutional reforms, accountability, and adaptive governance mechanisms.
Separate allocations of Tk 1.22 billion each have been proposed for gender equality and youth engagement initiatives, and for sustainable economic development through MSME promotion and urban economic corridor-based market linkages.
Planning Commission officials say feasibility studies and cost-benefit analyses will be undertaken prior to implementation to ensure economic viability and long-term sustainability.

jahid.rn@gmail.com

Share if you like