ADB to Review $13 Billion Projects Amid Implementation Delays

Talks between Bangladesh and the International Monetary Fund (IMF) over the next tranches of a $4.7 billion loan ended in Washington without an agreement. Key sticking points include IMF demands for more flexible exchange rates and stronger revenue collection.

Bangladesh and the World Bank signed two financing agreements totaling $850 million to boost infrastructure and job creation. Of this, $650 million will fund the Bay Terminal Marine Infrastructure Development Project in Chattogram, aiming to handle 36% of the country’s container volumes and save about $1.0 million daily by reducing vessel turnaround times.

The Islamic Development Bank (IsDB) will lend $167 million (approximately Tk 20.10 billion) to develop a 220MW solar power plant in Sonagazi, Feni, marking the country’s largest solar facility. The project’s total estimated cost is Tk 21.35 billion, with Tk 1.25 billion funded by the government and EGCB.

Bangladesh signed a supplementary $6.26 million loan agreement with Korea Eximbank for the "GMDSS and IMNS Project," enhancing maritime safety infrastructure. This new loan, under Korea’s Economic Development Cooperation Fund (EDCF), complements an earlier $37.5 million agreement, bringing the total project financing to $43.76 million.

The IMF’s continued delay in disbursing the next tranche of its $4.7 billion loan to Bangladesh comes amid signs of modest economic recovery. Inflation has dropped from 11.7% in July 2024 to 9.4% in March 2025, and foreign exchange reserves have stabilized after a steep fall.

The IMF has recommended that Bangladesh replace its complex domestic minimum tax (DMT) regime, among six key proposals, as part of conditions to unlock the next tranches of a $4.7 billion loan. During a recent review, the IMF urged the National Board of Revenue to simplify the DMT so it doesn’t exceed taxpayers' actual liabilities, and to apply it without exemptions.