asian development bank & bangladesh

8/9/2019 Asian Development Bank & Bangladesh

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Asian Development Bank &Bangladesh

FACT SHEET

As of December

Bangladesh joined the Asian Development Bank (ADB) in and establishedits first field office in . As of December , ADB had provided thecountry with $. billion in loans, and $. million in technicalassistance loans. Bangladesh is a major recipient of ADBs concessional AsianDevelopment Fundresources. ADBs earliest assistance to Bangladesh helpedthe country attain food self-sufficiency, before gradually shifting toward energyand transport in the late s, and later to education, financial markets, andurban water supply and sanitation.

Bangladesh has succeeded in achieving a steady reduction of povertyincidence, with the population living below the national poverty line steadilyfalling over the past decades. The country is now on track to achieve most ofthe Millennium Development Goals.

Under ADBs country partnership strategy (CPS), for Bangladesh,ADB supports the efforts of the Government of Bangladesh to make growthmore inclusive and greener by improving connectivity, promoting skills,improving financial markets, boosting energy efficiency and access, promotingpublicprivate partnerships, making cities more livable, improving themanagement of water resources, and reducing flood risk.

ADB-Supported Projects and Programs

ADB supports almost all of Bangladeshs key sectors. During ,over % of ADB assistance was directed toward agriculture and naturalresources. The focus shifted to infrastructure, with energy and transporttogether accounting for % of total ADB assistance during . Since, assistance for energy, transport, education, and water supply and othermunicipal infrastructure and services was further enhanced. Under its CPS, ADB plans to phase out support for primary education and increaseassistance for secondary education and skills programs.

In , ADB approved five loans to Bangladesh totaling $ million, andtechnical assistance grants of $. million. Under the ADB-assisted South AsiaSubregional Economic Cooperation (SASEC)BangladeshIndia Electrical GridInterconnection Project, South Asias first-ever high-voltage interconnectionbetween Bangladesh and India was inaugurated in . The interconnectionfacilitates an initial power flow of megawatts (MW) into Bangladesh from theIndian grid, with a provision to expand the power flow to , MW in the future.

ADB has approved a $ million multitranche financing facility (MFF)program to help finance a major overhaul of secondary education to meetBangladeshs need for skilled workers.

The $ million Dhaka Environmentally Sustainable Water SupplyProject will help expand the coverage and quality of water supplies to nearly million people in Bangladeshs fast-growing capital city of Dhaka. In addition,a $ million loan will provide much-needed investment in private sectorinfrastructure projects in Bangladesh, including in renewable energy.

Table . Bangladesh: CumulativeLending, and Grants Financedby ADB Special Funds, By Sector()a

Sector No.

TotalAmount

($ million) %b

Agriculture andNatural Resources ,. .

Education ,. .Energy ,. .

Finance . .

Health and Social Protection . .

Industry and Trade . .

Multisector ,. .

Public Sector Management . .

Transport and ICT ,. .

Water Supply and OtherMunicipal Infrastructureand Services ,. .

Total ,. .

Total Disbursements ,. million

ICT = information and communication technology.

a Excludes dropped or canceled loans prior to signing. Covers bothsovereign and nonsovereign loans, and grants financed by AsianDevelopment Fund and Other Special Funds. Other Special Fundsinclude Asian Tsunami Fund, Asia Pacific Disaster Response Fund,Climate Change Fund, and Pakistan Earthquake Fund.

b Total may not add up because of rounding.

Table . Bangladesh: Loan, TechnicalAssistance, and Grant Approvals( million)a

Loans

Sovereign Nonsovereign TechnicalAssistance Grants Total

. . .

= nil.

a Excludes cofinancing.

Table . Bangladesh: CumulativeNonsovereign Financingby Product

Number of Projects

Amount($ million)

Loans .

Equity Investments .

Guarantees .

B Loans .

Total .
http://www.adb.org/site/adf/mainhttp://www.adb.org/site/adf/mainhttp://www.adb.org/site/adf/mainhttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/countries/subregional-programs/sasechttp://www.adb.org/site/adf/mainhttp://www.adb.org/site/adf/main


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The $ million SASEC Road Connectivity Project ishelping to upgrade the critical DhakaNorthwest RegionalHighway and two land ports in Bangladesh.

ADB is also supporting the Power System Expansionand Efficiency Improvement Investment Program with a$ million MFF to boost Bangladeshs power supply system,which will reduce outages and shortages that are crippling theeconomy and causing severe hardship across the country.

Nonsovereign OperationsAs a catalyst for private investments, ADB provides directfinancial assistance to nonsovereign public sector andprivate sector projects in the form of direct loans, equityinvestments, guarantees, B loans, and trade finance.Since its inception, ADB has approved . million innonsovereign financing for Bangladesh, all of which wasfor private sector projects. Total outstanding balancesand commitments of ADBs private sector transactions inthe country as of December was . million,representing . of ADBs total nonsovereign portfolio.

ADBs Trade Finance Program (TFP)fills market gapsby providing guarantees and loans through partner banks in

support of trade. The TFP has done over , transactionssupporting over billion in trade and over , smalland medium-sized enterprises since . In , the TFPsupported billion in trade through over , transactions.In Bangladesh, the TFP works with banks and has supportedalmost . billion in trade between transactions. Inaddition to filling market gaps, the TFPs objective is tomobilize private sector capital/involvement in developing

Asia. In Bangladesh, of the . billion in trade supportedthrough the TFP was cofinanced by the private sector.

Cofinancing

Cofinancing operations enable ADBs financing partners,governments or their agencies, multilateral financinginstitutions, and commercial organizations, to participate infinancing ADB projects. The additional funds are providedin the form of official loans and grants, and commercialfinancing such as B loans, risk transfer arrangements,parallel loans, and cofinancing for transactions underADBs TFP.

By the end of , cumulative direct value-added(DVA) official cofinancing for Bangladesh amounted to$. billion for investment projects and $. millionfor technical assistance projects. Cumulative DVAcommercial cofinancing for Bangladesh amounted to$. million for two investment projects.

In , Bangladesh received $. million loancofinancing from the governments of France and Japan, theEuropean Investment Bank, Islamic Development Bank, andthe World Bank; and $. million grant cofinancing from thegovernments of Japan and the Republic of Korea.

Table .Bangladesh: Project Success Rates

Sector %a

No. of RatedProjects/Programs

Agriculture and Natural Resources . Education . Energy . Finance . Health and Social Protection .

Industry and Trade . Multisector . Public Sector Management . Transport and ICT . Water Supply and Other Municipal

Infrastructure and Services . Total .

Year of Approvals . s . s . s .

ICT = information and communication technology.

aBased on aggregate results of project/program completion reports (PCRs), PCR validationreports (PVRs), and project/program performance evaluation reports (PPERs) using PVRand PPER ratings in all cases where PCR and PVR/PPER ratings are available.

Sources: PCRs, PVRs, and PPERs containing a rating circulated as of December .

Table . Bangladesh: Portfolio Performance QualityIndicators for Sovereign Lending and Grants,

Number of Ongoing Loans (as of Dec ) ($ million) ($ million)

Contract Awards/Commitmentsa,b . .Disbursementsa . .

Number of Ongoing Grants (as of Dec )c ($ million) ($ million)

Contract Awards/Commitmentsa,b . .Disbursementsa . .

Actual Problem Projects ()

= nil.

Note: Totals may not add up because of rounding.

aIncludes closed loans/grants that had contract awards or disbursements during the year.bExcludes policy-based lending/grants.cIncludes only Asian Development Fund and other ADB special funds.

A summary of projects with cofinancing from January to December is available at www.adb.org/countries/bangladesh/cofinancing

Partnerships

Under its CPS , ADB contributes to the governmentsSixth Five-Year Plan priorities of accelerating growth andreducing poverty, focusing on harmonized sector and projectassistance to reduce transaction costs of assistance, secureresources needed to finance major public investments, andmeet capacity development requirements.

ADB has been strengthening and deepening existingpartnerships with all stakeholders in Bangladesh, includingthe private sector, civil society, academia, and developmentpartners through interactive communications such asworkshops, seminars, group discussions, and other meetings.

In Bangladesh, ADB financed a number of successfulprojects in coordination with other development partners.

Table . Bangladesh: Projects Cofinanced,

January December Cofinancing No. of Projects Amount ($ million)Projectsa ,.

Grants .

Official loans ,.

Commercial cofinancing .

Technical Assistance Grants .

aA project with more than one source of cofinancing is counted once.
http://adb.org/site/private-sector-financing/mainhttp://www.adb.org/site/private-sector-financing/trade-finance-programhttp://adb.org/site/public-sector-financing/official-cofinancinghttp://www.adb.org/countries/bangladesh/cofinancinghttp://www.adb.org/countries/bangladesh/cofinancinghttp://www.adb.org/countries/bangladesh/cofinancinghttp://www.adb.org/countries/bangladesh/cofinancinghttp://www.adb.org/countries/bangladesh/cofinancinghttp://adb.org/site/public-sector-financing/official-cofinancinghttp://www.adb.org/site/private-sector-financing/trade-finance-programhttp://adb.org/site/private-sector-financing/main


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The Third Primary Education Development Program isjointly financed by nine development partners, and supportscurriculum improvement, development of teachers skills,and institutionalization of a more effective and relevantclassroom assessment system.

ADB is working with Agence Franaise de Dveloppement,the European Investment Bank, and the Islamic DevelopmentBank to support the $. billion Power System Expansion and

Efficiency Improvement Investment Program.ADBs Bangladesh Resident Mission works closely withstakeholders to complement ADBs aid cooperation efforts.The resident mission conducts country programming,supports loan and technical assistance processing, managesthe portfolios of delegated ongoing loans and technicalassistance projects, and processes loan disbursements.

Procurement

From January to December , contractorsand suppliers were involved in , contracts for ADBloan projects worth $. billion. During the same period,contractors and suppliers from Bangladesh were involved in

, contracts for ADB loan projects worth $,. million.From January to December , consultants

were involved in , contracts for ADB loan projectsworth $. billion. During the same period, consultants fromBangladesh were involved in contracts for ADB loanprojects worth $. million.

Table . Bangladesh: Contractors/SuppliersInvolved in ADB Loan Projects, January December

Contractor/Supplier Sector

ContractAmount

($ million)Tecnicas Reunidas S.A. Energy .Navana Limited Water Supply and Other

Municipal Infrastructureand Services .

ATD-Energypac Consortium Energy .Ranken-MAPL Joint Venture Water Supply and Other

Municipal Infrastructureand Services .

Energypac Engineering Ltd. Energy .

Table . Bangladesh: Contractors/SuppliersInvolved in ADB Grant Projects, January December

Contractor/Supplier Sector

ContractAmount

($ million)

Khulna Mukti Seba Sangshta(KMSS) Health and Social Protection .

Population Service TrainingCenter (PSTC) Multisector .

Grameen Shakti Energy .Confidence Steel Ltd. Energy .Nari Maitree Multisector .

Table . Bangladesh: Top Consultants(Individual Consultants and Consulting Firms)Involved in ADB Loan Projects, January December

Consultant

Number ofTimes

Contracted

ContractAmount

($ million)Resource Planning & Management

Consultants .SMEC (Bangladesh) Pty., Ltd. .Sodev Consult .Kranti Associates Ltd. .DDC Consultants .

Table . Bangladesh: Top ConsultantsInvolved in ADB Grant Projects, January December

Consultant

Number ofTimes

Contracted

ContractAmount

($ million)BETS Consulting Services Ltd. .

Gustavson Associates LLC USA .Chittagong City Corporation .HB Consultants Ltd. .South Asia Management &

Engineering Services .

From January to December , contractorsand suppliers were involved in , contracts for ADBgrant projects worth $. billion. During the same period,contractors and suppliers from Bangladesh were involved in contracts for ADB grant projects worth $. million.

From January to December , consultantswere involved in , contracts for ADB grant projectsworth $. million. During the same period, consultants

from Bangladesh were involved in contracts for ADBgrant projects worth $. million.From January to December , consultants

were involved in , contracts for ADB technical assistanceprojects worth $. billion. During the same period, consultantsfrom Bangladesh were involved in contracts for ADBtechnical assistance projects worth $. million.

Table . Bangladesh: Share of Procurement Contracts

Item

Cumulative

(as of Dec )Amount

($ million)% ofTotal

Amount($ million)

% ofTotal

Amount($ million)

% ofTotal

Goods, Works, andRelated Services . . . . ,. .

Consult ing Services . . . . . .

Table . Bangladesh: Top Consultants(Individual Consultants and Consulting Firms)Involved in ADB Technical Assistance Projects, January December

Consultant

Number ofTimes

Contracted

ContractAmount

($ million)e-Gen Consultants, Ltd. .Maxwell Stamp Limited .

HB Consultants Ltd. .Bangladesh Women Chamber

of Commerce and Industry .Sodev Consult .Individual consultants .

Operational Challenges

Bangladesh faces critical challenges to sustainable economicdevelopment such as developing infrastructure, boostinginvestment, improving the business climate, enhancingthe efficiency of the finance sector and the capital market,developing skills, and addressing climate change impacts.
http://adb.org/site/business-opportunities/operational-procurementhttp://adb.org/site/business-opportunities/operational-procurement


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In this publication, $ refers to US dollars. Figures are estimated by ADB unless otherwise cited.Data are as of December unless otherwise indicated. Fact sheets are updated annually in April. April

Delays in implementation of development projects remainthe biggest challenge, which usually arise from prolongedprocurement of consulting services, and underperformanceof civil works contractors. ADB is undertaking actions to makeimprovements in key problem areas such as project start-updelays, approval processes, procurement, and financialmanagement. In coordination with the government, ADB alsoclosely monitors and effectively guides the executing agencies

to expedite and improve project implementation.

Future Directions

Through its public sector operations, ADB will continue toplay a key role in supporting investments and policy andinstitutional reforms in energy, transport, education, finance,agriculture and natural resources, and water supply and other

municipal infrastructure and services. ADB will also continueto step up support for regional cooperation in power, transport,and trade facilitation, and promote publicprivatepartnerships by supporting institutional development in keyinfrastructure sectors, in addition to expanding its privatesector operations, as emphasized in ADBs Strategy .

In accordance with the ADB CPS , theBangladesh country operations business plan, was

developed in . It comprises projects, totaling about$. billion in various sectors, including energy, transport,education, agriculture and natural resources, finance, andurban and water supply management. Technical assistanceprograms in consist of projects, totaling around$. million. ADB will continue to shift toward fewer andlarger projects using MFFs and broad cofinancing.

About Bangladesh and ADB

ADB Membership

Joined

Shareholding and Voting PowerNumber of shares held: , (.% of total shares)Votes: , (.% of total membership, .% of total regional membership)Overall capital subscription: $. billionPaid-in capital subscription: $. million

Contributions to Special Funds ResourcesBangladesh has contributed to the Technical Assistance Special Fund (TASF),which provides grants to borrowing members to help prepare projects and undertaketechnical or policy studies.

Contributions to the TASF (committed): $. million

Umesh Kumaris the Director and Iqbal Mahmoodis the Alternate Directorrepresenting Bangladesh on the ADB Board of Directors.

Kazuhiko Higuchiis the Country Director for the Bangladesh Resident Mission.The resident mission was opened in and provides the primary operational linkbetween ADB and the government, private sector, and civil society stakeholdersin its activities. The resident mission engages in policy dialogue and acts as aknowledge base on development issues in Bangladesh.

The Bangladesh government agency handling ADB affairs is the Ministryof Finance.

About the Asian Development BankADB is a multilateral development bank owned by members, from theregion and from other parts of the world. ADBs main instruments for helpingits developing member countries are policy dialogue, loans, equity investments,guarantees, grants, and technical assistance ( TA). In , lending volume was$. billion ( projects), with TA at $. million ( projects) and grant-financed projects at $. million ( projects). In addition,$. billionwasgenerated in direct value-added cofinancing in the form of official loans and grantsand commercial cofinancing such as B loans, risk transfer arrangements, parallelloans, and cofinancing for transactions under ADBs Trade Finance Program.From January to December , ADBs annual lending volume averaged$. billion. In addition, investment grants and TA funded by ADB and specialfunds resources averaged $. million and $. million in TA over the sameperiod. As of December , the cumulative totals excluding cofinancingwere $. billion in loans for , projects in countries, $. billion in grants, and $. billion in TA grants, including regional TA grants.

Contacts

Bangladesh Resident MissionPlot E-, Sher-e-Bangla Nagar, Dhaka

BangladeshTel + and/or Fax + [email protected]/bangladesh

ADB Headquarters ADB Avenue, Mandaluyong City Metro Manila, PhilippinesTel + Fax +

Ministry of FinanceEconomic Relations DivisionSher-e-Bangla Nagar, Dhaka , Bangladesh

Tel + Fax + [email protected]

Useful ADB websitesAsian Development Bankwww.adb.org

Asian Development Outlookwww.adb.org/publications/series/asian-development-outlook

Annual Reportwww.adb.org/documents/series/adb-annual-reports

Depository Librarieswww.adb.org/publications/depositories/ban

To access a complete list of developmentand economic indicators, visit:

Statistics and Databaseswww.adb.org/data/statistics
http://www.adb.org/documents/strategy-2020-working-asia-and-pacific-free-povertymailto:[email protected]://www.adb.org/bangladeshmailto:[email protected]://www.adb.org/http://www.adb.org/publications/series/asian-development-outlookhttp://www.adb.org/publications/series/asian-development-outlookhttp://www.adb.org/documents/series/adb-annual-reportshttp://www.adb.org/publications/depositories/banhttp://www.adb.org/data/statisticshttp://www.adb.org/data/statisticshttp://www.adb.org/publications/depositories/banhttp://www.adb.org/documents/series/adb-annual-reportshttp://www.adb.org/publications/series/asian-development-outlookhttp://www.adb.org/publications/series/asian-development-outlookhttp://www.adb.org/mailto:[email protected]://www.adb.org/bangladeshmailto:[email protected]://www.adb.org/documents/strategy-2020-working-asia-and-pacific-free-poverty

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