Bangladesh, ADB signs $275m deals for housing and Hill Tracts power

Bangladesh and the ADB have signed $275M in financing agreements to expand affordable housing for low-income families and modernize power grids in the Chattogram Hill Tracts

Desk Report

Oct 8, 2026, 06:23 AM2 min read

Bangladesh, ADB signs $275m deals for housing and Hill Tracts power

ERD Secretary Md Shahriar Kader Siddiky and ADB Bangladesh Resident Mission Country Director Qingfeng Zhang sign loan and grant agreements at a ceremony in Dhaka on October 7, 2026. ADB Executive Director Satya Srinivas Lolla and senior government and ADB officials attended the ceremony / Collecetd

Bangladesh and the Asian Development Bank signed two financing agreements worth $275 million on October 7 to boost affordable housing and improve electricity supply in the Chittagong Hill Tracts.

Economic Relations Division Secretary Md Shahriar Kader Siddiky and ADB Bangladesh Country Director Qingfeng Zhang signed the deals on behalf of the government and the bank. ADB Executive Director Satya Srinivas Lolla and other senior officials from both sides were present.

Of the total, $100 million is a loan for the Inclusive Affordable Housing Finance Project. Palli Karma-Sahayak Foundation will implement it under the Financial Institutions Division of the Finance Ministry. The money will help low- and middle-income families get easier access to housing loans, including through microfinance. It also aims to support women and promote climate-resilient homes.

The loan carries 2% interest and has a 25-year repayment period with a five-year grace period.

The second deal is a $175 million concessional loan for the Sustainable Energy Development and Community Empowerment Project in the Chittagong Hill Tracts. Bangladesh Power Development Board will carry it out. The project will expand and upgrade electricity distribution networks in remote and underserved areas of the hill districts. It will also make the power system more resistant to climate risks and support local economic activities that need reliable electricity.

A separate $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, managed by ADB, will support the energy project.

These agreements add to ADB’s long support for Bangladesh. So far the bank has given the country $36.69 billion in loans and $636.52 million in grants across energy, transport, education, agriculture, health, water and governance.

BOB Post