ADB pledges $2.57b for BD infrastructure, finance in 2025

The Asian Development Bank (ADB) committed $2.57 billion in new sovereign financing to Bangladesh in 2025, more than doubling its 2024 commitment of $1.18 billion.
The 2025 programme targets priority investments in energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises (SMEs), and improving livelihoods and services in Cox's Bazar.
This year's sovereign lending portfolio reflects a balanced mix across sectors and financing modalities, according to a statement issued on Monday.
"We proudly reaffirm our commitment to supporting Bangladesh's priorities during this significant transition period, which is further complicated by an increasingly challenging global landscape," said ADB Country Director Hoe Yun Jeong.
Jeong said "Our 2025 commitments underscore our enduring partnership with Bangladesh and our shared focus, in close collaboration with the Economic Relations Division(ERD) and other government ministries and agencies, on economic diversification, enhanced infrastructure and services, and human development".
ADB's sovereign commitments in 2025 demonstrated a strong focus on infrastructure and institutional reforms. Of the total $2.57 billion committed across ten projects, approximately 35 per cent supported transport infrastructure, 23 per cent was on finance, and 16 per cent supported public sector management and governance. Energy initiatives accounted for 11 per cent, while water and urban development contributed 9.0 per cent, and human and social development represented 6.0 per cent.
Key commitments include the $688 million South Asia Subregional Economic CooperationChattogram-Dohazari Railway Project, which will upgrade a critical rail line and build a bypass to enable direct train services from Dhaka to Cox's Bazar.
Also notable are the $500 million Stabilizing and Reforming the Banking Sector Program, Subprogram 1, aimed at strengthening regulation, corporate governance, asset quality, and financial stability; and the $400 million Climate-Resilient Inclusive Development Program Subprogram 2, designed to enhance climate resilience, reduce emissions in climate-critical sectors, and promote inclusive growth.
Enhanced project readiness and portfolio management strengthened implementation in 2025. ADB also provided non-sovereign assistance to the private sector, supporting investments in textiles, renewable energy, trade finance, food security, microfinance, and public-private partnerships (PPP).
Throughout the year, ADB worked closely with other development partners to deliver coordinated support for operationalizing the Bangladesh Climate Development Partnership, promoting public and financial sector reforms, and enhancing economic diversification and logistics.
These collaborative efforts helped mobilize $720 million in cofinancing. ADB also delivered targeted knowledge support to inform policy on foreign investment, inclusive development, and public debt management.
As of 31 December 2025, ADB's cumulative sovereign and non-sovereign loan commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio comprising 48 projects amounting to $10.8 billion.
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