Asian Development Bank’s Country Director Edimon Ginting says Sheikh Hasina's return as prime minister is urgent for the future of Bangladesh. "For the good future of Bangladesh, her (Sheikh Hasina) return was very much needed," PM's deputy press secretary K M Shakhawat Moon told reporters, quoting Ginting, on Wednesday (Jan 17). The meeting was held at the PM's official Ganabhaban residence.   Shakhawat said the ADB country director congratulated the Prime Minister on her re-election for the fourth consecutive term. "ADB is very happy," Ginting told her, adding, "We are always ready to work with Bangladesh.”   He expressed interest in the energy sector and climate change issues.   The PM mentioned that ADB's continuous support is a must for Bangladesh and thanked the agency for continuously supporting Bangladesh in its development endeavours and undertaking value-adding projects in its prioritised sectors. She also thanked the ADB for reaching its commitment to the highest amount of $3.6 billion in the last year, according to state news agency.   Presently, ADB is funding 61 projects in seven major sectors of Bangladesh economy: Transport, Water and Urban Infrastructure and Services, Energy, Human and Social Development, Agriculture, Food, Natural and Rural Development, Finance, Public Sector Management and Governance.   Hasina requested that the ADB undertake projects catering to the needs of the graduation challenges of the Bangladeshi economy, where improvement of logistics infrastructure and service delivery should be the utmost priority.   She said that given the climate vulnerabilities and climate emergencies, Bangladesh expects to have a larger share of ADB's climate finances. The premier requested the ADB scale up its grant and concessional climate finances for Bangladesh to develop a pipeline of high-quality climate projects and programmes to support climate outcomes in alignment with its national aspirations, manifested in "Mujib Climate Prosperity Plan 2022-2041", "National Adaptation Plan" and "Bangladesh Delta Plan 2100".   She thanked ADB for its recent approval of $400 million.   Sheikh Hasina informed the ADB that there are a number of budget supports in the pipeline for FY 2023-24 and 2024-25 on which the ADB may start discussions earlier to ensure their approval within the stipulated timeframe.   She expected that ADB would continue to finance Bangladesh's priority sectors to help the country maintain its growth momentum and carry out the future vision of a 'Smart Bangladesh'.   "ADB will continue to finance projects in its prioritised sectors," Sheikh Hasina said.

Prime Minister Sheikh Hasina today (Monday) sought support from the Asian Development Bank (ADB) to implement the Delta Plan-2100, saying, "It is very important for Bangladesh." The premier made the request when Vice President of ADB (Operations-1) Shixin Chen paid a courtesy call on her at her official Ganabhaban residence Ganabhaban this morning. PM's Press Secretary Ihsanul Karim told a media briefing after the meeting. The Prime Minister also sought ADB support to foster regional cooperation particularly in the areas of connectivity, trade and energy cooperation during the meeting. The ADB vice president assured of being with Bangladesh in its development efforts. "We have strong ties with Bangladesh and ADB will be with Bangladesh and continue to give support to both rural and urban development," he said. The ADB vice president commended the dynamic leadership of Sheikh Hasina to keep rolling the wheels of Bangladesh's economy amid the Covid-19 pandemic. "Bangladesh has been able to keep running the country's economy amid the Covid-19 pandemic due to the visionary leadership of Prime Minister Sheikh Hasina," he said. He also said his organisation expected that Bangladesh may achieve 7 percent growth in the GDP. Shixin Chen has praised the overall development of Bangladesh, saying, "Bangladesh is now going through a transitional period (due to its graduation as a developing nation) which is usually critical. But Bangladesh is doing well." Sheikh Hasina said the Covid-19 situation is now under control in Bangladesh and the countrymen have celebrated the holy Eid-ul-Fitr freely this time after two years. The premier highly appreciated the cooperation of the ADB during the pandemic period. About transition period due to Bangladesh's graduation as a developing nation, she said the government has undertaken various programmes to face the situation. Spelling out her government's different development programmes, she said that the hundred percent people of the country have been brought under electricity coverage. Sheikh Hasina said the government is now providing homes with lands to the homeless and landless people of the country aiming to give them an improved and better life. The Prime Minister said her government has taken programmes to produce more food replying to ADB vice president's projection that the world may face food shortage due to the Russia-Ukraine war. Sheikh Hasina said that the ICT sector of the country is developing. Regarding the regional connectivity for development, she said Bangladesh has opened the door for improving connectivity.  In this connection, she said the routes, those were shut after 1965 war, are being reopened. The premier sought deployment of Bangladesh senior officials in the top management and administration of ADB to maintain regional balance in recruitment. The ADB vice president said that Bangladesh has set one of the best examples to tackle the Covid-19 pandemic situation. Bangladesh has achieved huge development in the agriculture sector, he also said. The economic zones, which are being set up across Bangladesh, will meet the demands of domestic and international markets, he hoped. He expressed ADB's interest to help Bangladesh in the social protection programmes. Ambassador at large M Ziauddin, Principal Secretary Dr Ahmad Kaikaus, Economic Relations Department (ERD) Secretary Fatima Yasmin, ADB’s Deputy Director General (South Asian Department) Manmohan Parkash and its Country Director Edimon Ginting were present at the meeting. Source: BSS AH

The Asian Development Bank (ADB) has approved a $150 million loan to Bangladesh to provide financing for cottage, micro, and small-sized enterprises (CMSEs) operated by youth, returning migrant workers and rural entrepreneurs, particularly women, who have been hit hard by the COVID-19 pandemic.      The loan to Bangladesh Bank, the nation's central bank, will be on-lent to participating financial institutions (PFIs), which in turn will help 30,000 CMSEs operated by the beneficiaries.      The project aims to facilitate employment creation and help these vulnerable groups recover from the adverse impact of the COVID-19 pandemic, said a press release.      The release said youth unemployment remains in the country, and they are more severely affected as they concentrate in sectors such as retail trade, accommodation, and food services, which were worst hit by the pandemic.      About 400,000 overseas migrant workers have returned since the start of the pandemic, and many remain unemployed. Rural incomes have stayed depressed and nonfarm employment opportunities remain limited. Rural enterprises were severely affected, putting further pressure on rural employment.      "ADB supports the Bangladesh government's long-term strategy to tackle the country's employment challenges, which has been exacerbated by the pandemic," said ADB Principal Financial Sector Specialist for South Asia Dongdong Zhang.      "Promoting access to finance will help address a critical challenge of helping vulnerable groups in the immediate term and developing CMSEs in the long term,"Zhang added.      Given the limited access of women to finance and their high concentration in retail, travel, and hospitality sectors, they have borne brunt of the impact of the pandemic. The project has targeted to disburse 20 percent of the funds to microbusiness led by women to support their recovery.      ADB will provide an additional $900,000 technical assistance grant from its Technical Assistance Special Fund for Bangladesh Bank and PFIs to help them strengthen their risk management capacities, business process, and information systems.      The assistance will also boost their support of CMSEs by incorporating mobile finance, value chain financing, and sustainable financing tackling climate change.      This project builds on the $250 million policy-based Strengthening Social Resilience Program, approved by ADB in June 2021, to strengthen Bangladesh's social protection programs and resilience of vulnerable groups.      It also complements the $50 million additional financing to the ongoing Microenterprise Development Project, approved in December 2020, to help restore economic activities of microenterprises affected by COVID-19 in the country. Source: BSS AH

The Indian Central government and Asian Development Bank (ADB) on Wednesday signed a $112-million loan to develop water supply infrastructure and strengthen capacities of urban local bodies (ULBs) for improved service delivery in four towns in Jharkhand, informed the Ministry of Finance. The signatories to the agreement for Jharkhand Urban Water Supply Improvement Project were Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance, who signed for the Government of India, and Takeo Konishi, Country Director of ADB's India Resident Mission, who signed for ADB, according to a press statement from the Ministry. After signing the agreement, Mishra stated that the project is aligned with the Government of Jharkhand's priority to improve urban services in the state and will ensure continuously, treated piped water supply in Ranchi and other three towns of Hussainabad, Jhumri Telaiya, and Medininagar located in economically and socially backward areas. "The project will be ADB's first urban project in the state and help establish a model for continuous water supply combined with policy reforms for a sustainable operation which can be replicated by other low-income states for providing safe drinking water to urban households as envisaged under national Jal Jeevan Mission," said Konishi. Four water treatment plants, with a combined capacity of 275-million litres per day, will be established in the project towns to provide safe drinking water meeting with the national drinking water quality standards. The project will also establish 940 kilometers of the water distribution network to provide continuous water supply to about 115,000 households, including those below the poverty line, scheduled caste and scheduled tribe members, and other vulnerable groups. To ensure sustainability, the project will strengthen the capacity of ULBs on urban service delivery and governance through the development of an asset management strategy and training on design and implementation of urban projects. Innovative technologies will be introduced to minimize water losses in water treatment and distribution. The project also includes the use of supervisory control and data acquisition system for water supply operation, and geographic information system-based asset management in Ranchi. ADB is committed to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members--49 from the region, read the statement. Source: ANI

The Asian Development Bank (ADB) has launched a US$9 billion vaccine initiative—the Asia Pacific Vaccine Access Facility (APVAX)—offering rapid and equitable support to its developing members as they procure and deliver effective and safe coronavirus disease (COVID-19) vaccines. “As ADB’s developing members prepare to vaccinate their people as soon as possible, they need financing to procure vaccines as well as appropriate plans and knowledge to be able to safely, equitably, and efficiently manage the vaccination process,” said ADB President Masatsugu Asakawa, said a press release on Friday. “APVAX will play a critical role in helping our developing members meet these challenges, overcome the pandemic, and focus on economic recovery,” he added More than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 200,000 deaths. As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4 percent in 2020—the first regional gross domestic product contraction since the early 1960s. Promoting safe, equitable, and effective access to vaccines is a top priority for ADB’s COVID-19 response efforts. Vaccination programs can break the chain of virus transmission, save lives, and mitigate the negative economic impacts of the pandemic by restoring confidence in people’s ability to work, travel, and socialize safely. The APVAX provides a comprehensive framework and resource envelope for supporting developing Asia’s vaccine access, using two complementary components. The Rapid Response Component will provide timely support for critical vaccine diagnostics, procurement of vaccines, and transporting vaccines from the place of purchase to ADB’s developing members. The Project Investment Component will support investments in systems for successful distribution, delivery, and administration of vaccines along with associated investments in building capacity, community outreach, and surveillance. This may include such areas as cold-chain storage and transportation, vehicles, distribution infrastructure, processing facilities, and other physical investments. The component may also be used to develop or expand vaccine manufacturing capacity in developing members. ADB financing for vaccines will be provided in close coordination with other development partners including the World Bank Group, World Health Organization (WHO), COVID-19 Vaccines Global Access Facility (COVAX), GAVI, and bilateral and multilateral partners. APVAX promotes safe and effective vaccines to be accessed in a fair manner. For a vaccine to be eligible for financing, it must meet one of three criteria. It must be procured via COVAX, prequalified by WHO, or authorized by a Stringent Regulatory Authority. Additional access criteria, such as a vaccination needs assessment, a vaccine allocation plan by the developing member, and a mechanism for effective coordination among development partners also help ensure that vaccine support under APVAX can be fairly and effectively implemented. ADB is also making available a $500 million ‘Vaccine Import Facility’ to support the efforts of its developing members to secure safe and effective vaccines, as well as the goods that support distribution and inoculation. The facility is part of ADB’s Trade and Supply Chain Finance Program. Source: BSS AH

Public transport must adapt to a “new normal” in the wake of the coronavirus disease (COVID-19) pandemic and adopt technologies that will render it more green and resilient to future disasters, according to a new report by the Asian Development Bank (ADB). The report, Guidance Note on COVID-19 and Transport in Asia and the Pacific, details the profound impact of the pandemic on transport, as swift lockdowns forced millions this year to work from home overnight, schools to shift to e-learning, and consumers to flock to online shopping and food delivery, said an ADB press release today. While public transit may have been previously perceived as a mostly green, efficient, and affordable mode of travel, initial trends in cities that have re-opened have indicated that public transit is still considered to be relatively unsafe and is not bouncing back as quickly as the use of private vehicles, cycling, and walking. “The two key challenges ahead are addressing capacity on public transport to maintain safe distancing requirements, and how best to regain public confidence to return to public transport,” said Bambang Susantono, ADB Vice-President for Knowledge Management and Sustainable Development. “In the short term, more effort is needed to reassure public transport users of safety and demonstrate clean and safe public transport. In the longer term, technological advances, big data, artificial intelligence, digitalization, automation, renewables and electric power can potentially offer fresh innovations to tackle changing needs, giving rise to smarter cities,” added the ADB Vice President. While drastic lockdown measures around the world have brought world economies to their knees, satellites have recorded data on how the concentrations of CO2 and air pollutants have fallen drastically, bringing clear blue skies to many cities. But as cities have reopened, the traffic levels have increased. For example, Beijing traffic levels, by early April 2020, exceeded the same period in 2019. If this trend is seen on a wide scale, it could set back decades of effort in promoting sustainable development and more efficient means of urban mobility. The report says there is a short window of opportunity for cities to promote the adoption of low-carbon alternatives to lock-in the improved air quality conditions gained during the peak of the pandemic lockdown. Public transport can play an important role through more active promotion of clean vehicles, provision of quality travel alternatives in public transport, and a better environment for non-motorized modes such as walking and cycling to enhance overall health and wellbeing. The confidence of passengers on public transport should be restored through protective measures such as cleaning, thermal scanning, tracking and face covering, the report says. Further study to explore how protective and preventive measures can be stepped up to allow relaxation of safe distancing requirements would help mitigate capacity challenges. A possible future trend may be consolidation of services and rationalization of routes to better serve the emerging travel demand patterns and practices. As countries enter the “recovery” phase, further preventive and precautionary operating measures and advanced technology should be implemented to enable contactless processes and facilitate an agile response. The report said demand management measures can facilitate crowd control in public transport systems and airports. As a complementary measure, non-motorized transport capacity could be expanded to absorb spillover demand from public transport. Since mass public transport is the lifeblood of most economies, government policies and financial support are essential during this period, to enable public transport operators to stay viable and continue to support the movement of passengers and goods in a sustainable way. For ADB, which committed last year $7 billion to the transport sector, behavioral trends linked to COVID-19 may require a review of the short-term viability of passenger transport and operational performance to meet changing demand for public transit systems. “Regardless of the COVID-19 pandemic it is clear that developing Asia will continue to have a large need for additional transport infrastructure and services,” the report concludes. Source: BSS AH

Bangladesh’s GDP is expected to grow by 4.5 percent in FY2020 and 7.5 percent in FY2021, the Asian Development Bank (ADB) said in the update report of Asian Development Outlook (ADO) 2020 Supplement on Thursday.   The growth forecast for FY2020 reflects sharp decrease in economic activities in the last quarter due to COVID-19 pandemic and its outbreak in Bangladesh, according to a press release.   Bangladesh’s economy is expected to recover in fiscal year 2021 after coronavirus induced slowdown in FY2020, according to the latest ADB report of ADO Supplement.   During FY2021, GDP growth rate is expected to pick up to 7.5 percent driven by gradual recovery in the first two quarters, followed by quick recovery in the following quarters.   These forecasts rest on the assumption that it would take three months, from when the outbreak intensifies in the country, for economies to get their domestic outbreak under control and to start normalising economic activities, it said.   These forecasts also consider the impacts of the government’s containment actions, and fiscal and monetary stimulus measures. “After a robust performance in the first nine months of FY 2020, Bangladesh economy would slow down in near term due to COVID-19 pandemic but is likely to recover in FY2021,” said Country Director Manmohan Parkash.   “Managing the pandemic is a priority and the FY2021 forecast depends on how the recovery shapes up in the coming months,” he said.   Appreciating the resilience of Bangladeshi people, Parkash said, the global economic recovery, proactive initiatives to attract investments, creating local employment opportunities, and providing easier access to finance for farmers, entrepreneurs and small businesses could help jumpstart the economy.   “ADB has so far provided $600 million in loans and $1.4 million in grants for managing health emergency and mitigating the initial socio-economic impacts of the pandemic,” he added.   “In FY2021, ADB will continue its strong support to help Bangladesh economy recover and rebound from the impacts of COVID-19,” said Parkash.   5.5pc inflation   The government’s strict containment measures resulted in sharp reduction in consumption, production, and investment in the last quarter of FY2020.   Sweeping global spread of COVID-19 and containment measures in major export markets sharply reduced export earnings. Economic activities are expected to slowly return towards a normal path after restrictions are gradually lifted by the government since June 2020.   In FY2021, gradual recovery is expected to start from the first quarter, aided by the government’s stimulus measures in the absence of the recurrence of COVID-19 outbreak.   Afterward, strong manufacturing base and recovery in global economy will enable Bangladesh to experience a quick recovery. However, risks to the outlook are tilted downward, including a prolonged or recurrence of COVID-19 outbreak in Bangladesh and export destinations.   Inflation will stay at moderate levels in FY2020 and FY2021. Inflation is expected to slightly edge up to average 5.6 percent in FY2020 on higher food prices as well as non-food prices on account of higher domestic natural gas prices.   In FY2021, it will ease to 5.5 percent on better supply conditions. The inflation forecasts rest on the assumption that potential upward pressure in prices from the COVID-19 pandemic related stimulus measures are expected to be offset by fall in demand from the consumers. Source: UNB AH

The global economy may suffer between $5.8 trillion and $8.8 trillion in losses-equivalent to 6.4 percent to 9.7 percent of global gross domestic product (GDP)-as a result of the novel coronavirus disease (COVID-19) pandemic, says a new report released by the Asian Development Bank (ADB) Friday. The report, Updated Assessment of the Potential Economic Impact of COVID-19, finds that economic losses in Asia and the Pacific could range from $1.7 trillion under a short containment scenario of 3 months to $2.5 trillion under a long containment scenario of 6 months, with the region accounting for about 30 percent of the overall decline in global output. The People’s Republic of China (PRC) could suffer losses between $1.1 trillion and $1.6 trillion. The new analysis updates findings presented in the Asian Development Outlook (ADO) 2020 published on 3 April, which estimated COVID-19’s global cost to range from $2.0 trillion to $4.1 trillion, said an ADB press release. The report said the governments around the world have been quick in responding to the impacts of the pandemic, implementing measures such as fiscal and monetary easing, increased health spending, and direct support to cover losses in incomes and revenues. Sustained efforts from governments focused on these measures could soften COVID-19’s economic impact by as much as 30 percent to 40 percent, according to the report. This could reduce global economic losses due to the pandemic to between $4.1 trillion and $5.4 trillion. The analysis, which uses a Global Trade Analysis Project-computable general equilibrium model, covers 96 outbreak-affected economies with over 4 million COVID-19 cases. “This new analysis presents a broad picture of the very significant potential economic impact of COVID-19,” said ADB Chief Economist Yasuyuki Sawada. “It also highlights the important role policy interventions can play role in helping mitigate damage to economies. These findings can provide governments with a relevant policy guide as they develop and implement measures to contain and suppress the pandemic, and lessen its impacts on their economies and people.” ADB’s COVID-19 Policy Database provides detailed information on the key economic measures that ADB members are taking to combat the pandemic. Under the short and long containment scenarios, the report notes that border closures, travel restrictions, and lockdowns that outbreak-affected economies implemented to arrest the spread of COVID-19 will likely cut global trade by $1.7 trillion to $2.6 trillion. Global employment decline will be between 158 million and 242 million jobs, with Asia and the Pacific comprising 70% of total employment losses. Labor income around the world will decline by $1.2 trillion to $1.8 trillion-30 percent of which will be felt by economies in the region, or between $359 billion and $550 billion. Apart from increasing health spending and strengthening health systems, strong income and employment protection are essential to avoid a more difficult and prolonged economic recovery. The report said the governments should manage supply chain disruptions; support and deepen e-commerce and logistics for the delivery of goods and services; and fund temporary social protection measures, unemployment subsidies, and the distribution of essential commodities-particularly food-to prevent sharper falls in consumption, the report says. Since the situation is rapidly evolving, ADB will update its impact assessment considering additional spillover channels as needed. ADB is actively supporting its members as they address the effects of COVID-19 through its $20 billion response package announced on 13 April. The bank has approved a series of measures to streamline its operations for quicker and more flexible delivery of assistance. Source: BSS AH

The Asian Development Bank (ADB) on Wednesday projected 8 percent GDP growth in Bangladesh in the current fiscal year indicating that the country will continue as the fastest growing economy in Asia and the Pacific. The multilateral lending agency attributed the growth to continued buoyant exports, robust private consumption with higher remittances, accommodative monetary policy, ongoing reform to improve business climate for private investment, and public infrastructure investment. On the supply side, sustained strong growth in industry and agriculture are expected to be the main drivers of growth in FY2020, said the ADB. “Bangladesh economy is in a good shape and is likely to continue to grow. At 8 percent growth in FY2020, ADB’s outlook indicates that Bangladesh is likely to continue as the fastest growing economy in Asia and the Pacific,” said ADB Country Director Manmohan Parkash adding that favorable trade prospects are expected to continue despite a weaker global growth. Reports UNB. Launching the Asian Development Outlook (ADO) 2019 Update at its office in the city, he said exports and remittances are likely to be further strengthened. “Strong public investment due to continued policy environment and expediting implementation of large infrastructure projects are also envisaged. We see such momentum to continue in FY2020,” said the ADB Country Director. Parkash said such strong performance and prospects are commendable, especially under the current situation and near term forecast of moderating growth in developing Asia. AH

The Asian Development Bank (ADB) will provide around $ 5bn to Bangladesh for 2020-2022, aiming to further strengthen its partnership to promote rapid, inclusive and sustainable growth in the country.  Asian Development Bank (ADB) Country Director for Bangladesh Manmohan Parkash met Prime Minister Sheikh Hasina recently and handed over ADB’s new Country Operations Business Plan (COBP) for 2020-2022, which programs around $5 billion in firm projects.  Projects worth another $4.9 billion have been included in the pipeline as “standby”.  The projects will be taken up for ADB financing based on their readiness.  Country Director Parkash appraised Prime Minister Hasina of the ADB’s enhanced development programs for Bangladesh, ADB said in a media release on Friday. Reports UNB.    The COBP aligns with the government’s Seventh Five-Year Plan and ADB’s Strategy 2030 and supports implementation of sustainable development goals targets.  It is also aligned with the government’s new manifesto, which highlights the priorities and sets the stage for the next 5-year plan. Prime Minister Sheikh Hasina appreciated ADB assistance and highlighted her government’s priorities for infrastructure and human capital development, science and technology research, rural and agricultural development, and private sector promotion.  Complimenting Prime Minister Hasina on strong economic performance, Country Director Parkash said that the new COBP is consistent with government priorities and a pathway to prosperity.  He reaffirmed ADB’s continued assistance to further strengthen its partnership to promote sustainable growth in Bangladesh. ADB assistance is well distributed in infrastructure and social sectors. About 54% of sovereign investments (by volume) will further improve human capital; enhance urban services, water supply and sanitation; strengthen road, railway and port connectivity; promote rural development; and improve access and quality of electricity supply.  The lending prioritizes skills development and tertiary education with an emphasis on information technology.  It also prioritizes Bangladesh’s participation in regional and global value chains by furthering regional cooperation and integration in the South Asia Subregional Economic Cooperation (SASEC) and beyond.  The program will enable greater private sector investment by easing credit constraints and facilitating local currency bonds. Major projects include Dhaka-Sylhet Road, Joydevpur-Elenga-Rangpur-Burimari-Banglabandha road, Faridpur-Barishal road, dual gauging of Dhaka-Chattogram rail lines, Chattogram-Cox’s Bazar Rail Line, Dhaka MRT Line 5 (Gabtoli-Panthapath-Aftabnagar), Skills for Employment Project, Computer and Software Engineering Tertiary Education Project, Dhaka Sewerage  System and Water Supply Projects, and Khulna Sewerage System Development Project.  The pipeline also includes projects to automate revenue administration, develop bond markets, strengthen the banking system, and improve irrigation, rural connectivity and electrification. In its 46-year-long partnership with Bangladesh, ADB has mobilized over $25 billion in loans and grants to help bring better infrastructure, public services, and social development outcomes to the people of Bangladesh.  In 2018 alone, ADB approved a record $2.5 billion in assistance to the country.  This included a grant of $100 million as the first phase of a projected $200 million support for the immediate needs of people sheltered in the camps in Bangladesh’s Cox’s Bazar region. AH