Bangladesh to receive $100m from ADB to mitigate pandemic

The Asian Development Bank (ADB) and the government of Bangladesh on Wednesday signed a $100-million loan agreement to support the government’s efforts to address the immediate public health requirements for mitigating the novel coronavirus disease (COVID-19) pandemic.

Economic Relations Division (ERD) secretary Fatima Yasmin and ADB country director Manmohan Parkash signed the loan agreements remotely on behalf of Bangladesh and ADB respectively. 

ADB’s Board of Directors approved the assistance on 30 April 2020, according to an ADB media release.

ADB country director Manmohan Parkash said, “As a trusted development partner, we are pleased to offer $100 million to bolster the government’s efforts in managing this catastrophic pandemic, which challenges Bangladesh’s recent successes in socio-economic development.”

“Bangladesh has taken decisive actions to manage the Covid-19 outbreak and this assistance will support the Government’s efforts in mitigating the health sector challenges in short and medium terms,” Parkash said.

“I am confident the challenges will be met successfully through pragmatic policy decisions, and health sector capacity building and reforms,” Parkash further added.

The assistance under the Covid-19 Response Emergency Assistance Project will help by providing urgently needed health equipment, medical supplies, diagnostic systems, and upgrading of the capacity of the health workforce in Bangladesh.

This project will also support the upgrade of medical infrastructure and the development of system and community capacities for surveillance, prevention.

17 Medical college hospitals will be equipped with isolation and critical care units with this assistance and capacity and quality of at least 19 laboratories will be upgraded with Covid-19 microbiological diagnostic facilities.

Furthermore, at least 3,500 health sector workers, about 50% of whom are women, will be trained in modern skills and knowledge, and the recruitment of more health professionals and technical staff will be supported.

Earlier, on 7 May, ADB approved $500 million to strengthen Bangladesh’s efforts to mitigate the socio-economic impact of the Covid-19 pandemic.

Particulars of the loan

The concessional assistance for the project will be sourced from ADB’s ordinary capital resources with an interest charge at the rate of 1.0% per annum; a term of 40 years, including a grace period of 10 years; repayment of principal at 2% per annum for the first 10 years after the grace period, and 4% per annum thereafter.