The Asian Development Bank has scaled up financing for Bangladesh by 60 percent to $8 billion for 2016-2020 in order to help the country get over infrastructure constraints and improve human capital.

The Manila-based lender disclosed its lending plans as it announced its Country Partnership Strategy (CPS) at a programme at the National Economic Council in Dhaka yesterday.

The financing for the next five years will also seek to help the country support economic corridor development, improve rural livelihood, and enable it to provide climate and disaster resilient infrastructure and services.

“The new Country Partnership Strategy is founded on Bangladesh's remarkable success,” said ADB Country Director Kazuhiko Higuchi while making a presentation on the plans.

Half of the loan amount would be given on concessional terms while the remainder would carry market-based interest rates, according to an ADB official.

The concessional part carries interest rates of less than 2 percent, with a 25-year repayment period, including an eight-year grace period. The market-based lending carries interest rates of the London Interbank Offered Rate plus 0.5 percent, 1 percent commitment charge on undisbursed funds, and it would be offered for up to 20 years with a five-year grace period.  

Higuchi said the new CPS was aligned with Bangladesh's Seventh Five-Year Plan.

In the previous CPS period of 2011-2015, the ADB's lending to Bangladesh exceeded $5 billion.