ADB provides $82m to help improve climate resilience

The Asian Development Bank (ADB) and the Government of Bangladesh Sunday signed agreements for $82 million in loans and $12 million in grants to protect coastal towns from the ravages of natural disasters and climate change. Saifuddin Ahmed, Joint Secretary, Economic Relations Division (ERD) and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission, ADB signed the agreements, on behalf of Bangladesh and ADB respectively, at a ceremony at ERD office in the city. The assistance will support eight vulnerable secondary coastal towns build up their climate resilience and disaster preparedness. The towns are Amtali, Galachipa, Mathbaria, Pirojpur, Barguna, Bhola, Daulat Khan, and Kalapara. The towns were selected based on their needs, population size and density, and level of past investments. Of the $82 million ADB loan, $52 million is from the concessional Asian Development Fund (ADF) resources while the rest $30 million comes from the ADB Strategic Climate Fund (SCF). The ADF loan will have a 25-year term, including a grace period of 5 years, and an interest rate of 2.0% per annum during the grace period and thereafter. The ADB-SCF loan will have a 40-year term, including a grace period of 10 years and an annual service charge of 0.10 per cent, according to a statement.