Written by The Banking Post
The government has approved seven hard-term loans worth $1.44 billion—the largest such package cleared in a single sitting under the current interim administration.
The Standing Committee on Non-Concessional Loans, chaired by Finance Adviser Dr Salehuddin Ahmed, gave the nod at a meeting in Dhaka on Wednesday, officials at the Economic Relations Division (ERD) said.
The loans will come from the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Investment Bank (EIB), and Islamic Development Bank (IsDB).
Of the total, three new loans from the ADB alone amount to $649 million. These include $508 million for the Chattogram-Dohazari railway line, $50 million for Khulna WASA, and $91 million for expanding NESCO’s distribution network. All three will be financed through ADB’s Ordinary Capital Resources (OCR), a market-based lending window.
The AIIB will provide $400 million in budget support, while the EIB has committed €90 million for the Sayedabad water treatment plant and €70 million for Dhaka’s environmentally sustainable water supply project. The IsDB will extend $231 million for the construction of five climate-resilient bridges in Mymensingh.
Unlike concessional loans, these borrowings are market-based, come with higher interest rates, and have shorter maturity periods.
The standing committee typically approves such loans when concessional financing is unavailable but projects are deemed critical, including infrastructure, water supply, and climate-resilient development.
Officials said the approvals underscore the government’s need to keep vital infrastructure and utility projects on track despite constrained access to cheaper credit options.
