Dhaka, Oct 7 (V7N) – Bangladesh has secured $277.72 million in financing from the Asian Development Bank (ADB) for two major development initiatives—one aimed at making housing finance more accessible, and the other focused on expanding electricity access in the Chattogram Hill Tracts.

The package, signed today in Dhaka, consists of two concessional loans worth $275 million and a $2.72 million grant. Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Qingfeng Zhang, ADB Country Director for Bangladesh, inked the agreements on behalf of their respective sides. ADB Executive Director Satya Srinivas Lolla and senior government officials attended the ceremony.

The first component—the Inclusive Affordable Housing Finance Project—will receive a $100 million concessional loan. It will be implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division.

The project is designed to broaden housing microfinance services, with a particular focus on empowering women borrowers. It also seeks to improve access to climate-resilient housing finance, thereby supporting poverty reduction, social protection, and inclusive economic growth. The loan carries a 2 percent annual interest rate, repayable over 25 years with a five-year grace period.

The second component—the Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project—will receive a $175 million concessional loan and a $2.72 million grant. The Bangladesh Power Development Board (BPDB) will implement the project under the Power Division.

The initiative aims to deliver reliable electricity to remote and underserved communities by modernising distribution networks and strengthening the climate resilience of power infrastructure. It is also expected to stimulate electricity-dependent economic activities in the region. The loan terms mirror those of the housing project—2 percent interest over 25 years with a five-year grace period. The grant portion comes from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) , administered by the ADB.

The ADB has been a key development partner for Bangladesh since the country joined the bank in 1973. To date, it has extended $36.69 billion in loans and $636.52 million in grants to Bangladesh, supporting sectors ranging from power and energy to transport, education, agriculture, health, water resources, governance, and finance.

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