ADB to provide $3b each year till 2026

The Asian Development Bank is planning to provide budget support and big project financing for the next three years to facilitate the country's smooth graduation from the least-developed country bracket.

"At least, we will try to achieve $3 billion next year…on an average, $3 billion every year [for] next three years for Bangladesh," ADB Country Director Edimon Ginting told reporters yesterday after a meeting with Planning Minister MA Mannan at the latter's office in Dhaka.

For this year, ADB has planned to approve $2 billion in concessional loans, including financing for vaccine manufacturing. It will also approve close to $1.5 billion in soft-term loans, Ginting added.

"This is ADB's indicative plan -- if the government can utilise the funds, ADB is willing to provide more financing," said a planning ministry official informed with the proceedings.

ADB has already approved budget support of $800 million as policy-based loans this year and in November it is likely to approve another $400 million in budget support, he said.

Discussion for the $400 million budget support is ongoing, the official added.

The meeting with Mannan was to discuss Bangladesh's vaccine manufacturing project.

ADB intends to provide $338 million for the project, with 50 percent of the amount being concessional loans and the rest non-concessional loan, Ginting said, adding that the interest rate for the concessional loan will be 2 percent.

"I think, this project will support Bangladesh in producing vaccines here in the country. During the pandemic, Bangladesh had to import vaccine and it was not always available. So, hopefully, with Bangladesh's manufacturing capacity, when there will be a disaster in future, the country can produce vaccines very quickly."

When Bangladesh graduates from the LDC bracket in 2026, internationally available vaccines will be at the market price, said Ginting, who has been ADB's country director in Bangladesh since October 2021.

"The country has the capacity to produce vaccine locally."

Beyond this, ADB's support to Bangladesh in the vaccine project also aims to make the country capable of exporting vaccines in the future considering its reputed pharmaceutical sector, Ginting added.

Mannan told reporters that once the vaccine project is implemented, the country will be able to produce different types of vaccines.

The project's theoretical aspects will be overseen by the World Health Organisation as its guidance and standard is "very important". ADB will finance it and Bangladesh will produce the vaccines.

If Bangladesh does not sign the relevant documents by the end of this year, the country might miss the opportunity to get a concessional loan for the project, Mannan added.