The Asian Development Bank (ADB) is set to provide approximately $300 million for two major projects in Bangladesh in 2027, focusing on improving water supply, sanitation, and urban infrastructure in towns and cities. The two initiatives include the Cluster Towns Water Supply and Sanitation Project and the Third City Region Development Project, both aimed at enhancing the quality of life and urban resilience in the country.
An official from the Economic Relations Division (ERD) stated that ADB has allocated $150 million for the Cluster Towns Water Supply and Sanitation Project. The Department of Public Health Engineering (DPHE) will execute the project, which will cover 22 coastal towns. The project will focus on water supply systems, sanitation, and solid waste management. A feasibility study is underway to assess water sources, treatment facilities, distribution networks, and sanitation systems across the targeted towns.
Additionally, ADB plans to invest another $150 million for the Third City Region Development Project in 2027. The Local Government Engineering Department (LGED) will oversee the project, which targets the Mymensingh City Region (MCR) and Rajshahi City Region (RCR) for development as economic counter-magnets. The selection of these regions was based on multi-criteria analysis and extensive stakeholder consultations.
According to the ERD official, the project will enhance urban and regional economic development strategies by implementing sustainable urban drainage systems, developing civic and economic infrastructure such as roads, bus terminals, and community markets, leveraging innovative financing instruments, and building municipal capacity for climate resilience, participatory urban planning, and sustainable service delivery. Comprehensive City Region Plans (CCRP) will be prepared for MCR and RCR, incorporating thematic layers like regional connectivity, economic spillover planning, and natural resource management.
ADB Country Director Hoe Yun Jeong, during a site visit to ADB-funded projects in Patuakhali and Chalna, stated, “The city region development scheme is currently in its second phase. We are working with LGED on the third phase, discussing potential geographic areas and sub-projects with the government.”
ADB is Bangladesh’s second-largest multilateral development partner, providing $2.52 billion in the last fiscal year and committing $2 billion for future assistance. Its current portfolio in Bangladesh totals approximately $11.8 billion, spread across 51 ongoing projects. Since 1973, ADB has assisted Bangladesh with a total of $33.951 billion in loans and $571.2 million in grants across sectors such as power, local government, transport, education, agriculture, health, water resources, and governance.
These projects are expected to significantly improve water supply, sanitation, and urban infrastructure, promote sustainable city planning, and strengthen municipal capacities, marking a new chapter in Bangladesh’s urban and regional development.