The government of Bangladesh and the Asian Development Bank (ADB) on Tuesday inked loan agreements amounting to $1.026 billion for five transformative projects.
The projects are aimed at enhancing energy efficiency, establishing domestic vaccine production, strengthening technology programmes, delivering clean water, and upgrading road infrastructure in Bangladesh.
The deals, signed at the Economic Relations on Tuesday, will cover delivering clean water, and sanitation services in the Chittagong Hill Tracts and upgrading the Dhaka-Northwest international road corridor project.
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Edimon Ginting, ADB Country Director for Bangladesh, represented their respective entities during the signing ceremony.
$200 Million for Energy Efficiency:
The ADB will allocate $200 million to support Bangladesh in enhancing energy efficiency through smart metering and transitioning to clean energy solutions. The Smart Metering Energy Efficiency Improvement Project aims to reduce losses by installing 6,50,000 smart prepaid gas meters primarily in South Dhaka and Narayanganj. This initiative aligns with Bangladesh's commitment to climate mitigation under the Paris Agreement, anticipating a reduction of around 400,000 tonnes of carbon dioxide emissions annually.
Edimon Ginting highlighted the project's benefits, stating, "This project will help save gas, prevent gas wastage, build customers' awareness of the safe and efficient use of gas, and improve the financial performance of the gas distribution company."
An additional technical assistance of $1.75 million will support the government in low-carbon energy transition and methane leakage reduction, funded by a $1 million grant from the Technical Assistance Special Fund and $750,000 from the Republic of Korea e-Asia and Knowledge Partnership Fund.
$336.5 Million for Vaccine Production:
The ADB will provide $336.5 million to establish domestic vaccine, therapeutics, and diagnostics manufacturing capacity in Bangladesh. The Vaccines, Therapeutics, and Diagnostics Manufacturing and Regulatory Strengthening Project will contribute to building a vibrant ecosystem for vaccine production, ensuring sustainable supply in the medium term. The project will also strengthen the national regulator to guarantee vaccine supply security.
Under the project, a vaccine, therapeutic, and diagnostics manufacturing facility and warehousing unit will be established in Essential Drugs Company Limited's (EDCL) existing location at Gopalganj, with a capacity to manufacture 58 million vials of vaccines per year.
An in-house research and development centre will be established to support the production of diagnostic kits and packaging of biosimilar therapeutics. It will also support the manufacture of at least two full-cycle vaccines by developing a seed bank, master cell bank, and working cell bank, in addition to at least five fill-and-finish vaccines.
Ginting emphasised the significance of the project, saying, "This project will help create a vibrant ecosystem for vaccine production in the country, ensuring sustainable supply in the medium-term, and at the same time, building Bangladesh's capacity to manage future pandemics better."
$90 Million for Clean Water and Sanitation:
A $90 million loan will be utilised to develop infrastructure and systems for clean drinking water and sanitation services in Bandarban, Lama, and Rangamati towns in the Chittagong Hill Tracts. The CHT Inclusive and Resilient Urban Water Supply and Sanitation Project will enhance health and economic opportunities while reducing water-borne diseases.
The project will develop water treatment plants with a total capacity of 44 million litres per day in Bandarban, Lama, and Rangamati municipalities, as well as 24 kilometres of transmission line and 340 kilometres of new water distribution network to connect to households.
Ginting highlighted the support for inclusive and climate-resilient development, stating, "The improved services will reduce the risks of water-borne diseases, enhance health and economic opportunities, and benefit women who spend considerable productive time daily collecting water and managing wastes."
$100 Million for Technology and Engineering Programmes:
ADB will provide a $100 million loan to enhance computer science, software engineering, and information technology (IT) programs in three universities in Bangladesh. The project aims to accelerate the adoption of fourth industrial revolution technology, contribute to the vision of Digital Bangladesh, and create a pool of digitally qualified human resources and entrepreneurs.
Ginting emphasised the project's role in fostering innovation and competitiveness, stating, "This new initiative builds on ADB's ongoing skills development support through industry partnerships to increase competitiveness and foster innovation."
$300 Million for Road Corridor Upgrade:
The ADB will allocate a $300 million loan to upgrade the Dhaka-Northwest international trade corridor in Bangladesh. This forms the third tranche of $1.2 billion multitranche ADB loans for the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project. The project aims to reduce vehicle operating costs, travel time, emissions, accidents, and congestion along the Dhaka-Northwest road corridor.
Ginting stated, "The project will also help accelerate the economic development of the area along the corridor and facilitate subregional trade with Bhutan, Nepal, and India."
These initiatives reflect the collaborative efforts between Bangladesh and ADB to address critical challenges, promote sustainable development, and bolster key sectors vital for the country's progress.
The project will contribute significantly to Bangladesh's objective of establishing an efficient and modern transport system by expanding the 190-kilometre section from Elenga through Hatikumrul to Rangpur into a four-lane configuration.
ADB has been a longstanding supporter of Bangladesh's efforts to enhance the Dhaka-Northwest road corridor, a commitment that dates back to the approval of the groundbreaking Jamuna Bridge Project in 1994. This comprehensive undertaking has been pivotal in fostering economic growth and connectivity.
Under the SASEC Road Connectivity Project sanctioned in 2012, a critical 70-kilometre segment, namely the Joydeypur-Elenga section, was upgraded. This project not only contributed to the road corridor's enhancement but also played a crucial role in improving the operational efficiency of key land ports, including Burimari and Benapole. These ports serve as vital gateways to Bhutan and India, respectively, facilitating seamless regional trade and connectivity.
