ADB Flags $11b Bangladesh Projects as Problematic

Representational photo

The Asian Development Bank (ADB) has expressed growing concern over the performance of several of its major development projects in Bangladesh, with nearly US$11 billion worth of initiatives flagged as “problematic” or “slow-moving.” Officials confirmed that the Manila-based lender has identified at least 16 underperforming projects that are now set for close scrutiny in an upcoming high-level review.

A Tripartite Portfolio Review Meeting (TPRM) is scheduled to take place in Dhaka on September 30, bringing together representatives from the ADB, Bangladesh’s Economic Relations Division (ERD), and the implementing public agencies. The meeting is expected to focus on identifying bottlenecks, resolving implementation delays, and putting lagging projects back on track.

“Some of the projects are stuck at the preparation stage, while others are advancing slowly due to procurement complexities and weak performance by implementing agencies,” an ERD official explained. “The meeting will allow all three parties to sit together and work out solutions that are often difficult to resolve through official correspondence alone.”

Projects in the Spotlight

Among the delayed projects are some of the country’s most ambitious infrastructure ventures, including the Dohazari-Ramu-Cox’s Bazar railway line, the Dhaka Mass Rapid Transit Development Project (Line 5, Southern Route), the South Asia Sub-regional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2, and the Rehabilitation of the Surma Flood Embankment Project.

According to ADB data, its current sovereign portfolio in Bangladesh includes 67 loans and 3 grants, with a total value of $11.02 billion. The Bank has long played a central role in Bangladesh’s economic development, second only to the World Bank among multilateral partners, and has been supporting the country since its independence in 1971.

Risk of Fund Diversion

Officials warned that if the projects continue to stall, ADB may consider diverting allocated funds to other more viable initiatives. In the previous TPRM, the Bank cautioned implementing agencies that persistent delays would not be tolerated and insisted on stricter monitoring and accountability. An action plan was drawn up at that time, and its progress will also be reviewed in the forthcoming meeting.

ADB’s concerns are significant for Bangladesh, given the scale of its financial commitment. As of December 31, 2024, the Bank had committed a cumulative $33 billion to Bangladesh through 740 public-sector loans, grants, and technical assistance projects.

Recent Disbursements

Despite challenges, ADB continues to disburse substantial funds to Bangladesh. In FY 2024–25, the Bank released $2.52 billion in assistance, compared with $2.13 billion in FY 2024 and $1.78 billion in FY 2023, according to ERD figures.

Moving Forward

Government officials are hopeful that the September 30 review will lead to practical solutions. “We expect many of the obstacles to be resolved once all stakeholders are at the same table,” said an ERD representative. “The aim is to accelerate progress so that these projects can deliver on their intended development impact.”

The upcoming meeting is therefore seen as a critical moment in ensuring that Bangladesh’s ADB-funded projects—central to improving connectivity, urban transport, and climate resilience—avoid further setbacks and contribute effectively to the country’s long-term growth ambitions.