ADB Pledges $2.57 Billion in New Sovereign Financing for Bangladesh in 2025

The Asian Development Bank (ADB) has pledged $2.57 billion in new sovereign financing for Bangladesh in 2025, more than double the $1.18 billion committed in 2024, the ADB Dhaka office said on Sunday.

According to ADB, the 2025 program will prioritize investments in energy, transport, banking sector reforms, urban services, climate resilience, small and medium-sized enterprises (SMEs), and livelihoods and services development in Cox’s Bazar. The sovereign lending portfolio for the year reflects a balanced mix across sectors and financing modalities.

ADB Country Director Hoe Yun Jeong said the bank is reaffirming its commitment to supporting Bangladesh at a critical juncture, made more complex by an increasingly challenging global environment.

“Our 2025 commitment underscores ADB’s enduring partnership with Bangladesh and our collaboration with the Economic Relations Division and other government ministries and agencies to advance shared goals of economic diversification, improved infrastructure and services, and human development,” he said.

ADB’s 2025 sovereign commitments demonstrate a strong focus on infrastructure development and institutional reforms. Of the total $2.57 billion pledged across 10 projects, around 35 percent will support transport infrastructure, 23 percent financial sector financing, and 16 percent public sector management and governance. Energy initiatives account for 11 percent, while water and urban development represent 9 percent, and human and social development make up 6 percent.

Among the key commitments is $688 million for the South Asia Subregional Economic Cooperation (SASEC) Chattogram–Dohazari Railway Project, which will upgrade a critical rail corridor and construct a bypass to enable seamless train services from Dhaka to Cox’s Bazar.