The New Development Bank (NDB), formerly known as the BRICS Bank, is poised to provide $443 million in financing for the repair and replacement of aging gas pipelines in Dhaka and Narayanganj, Bangladesh. An appraisal mission from the NDB is currently in Bangladesh to finalize the loan agreement, with the signing expected in April 2024. This marks the second project loan from the NDB, of which Bangladesh became a member in 2021.
The project aims to replace approximately 2,700 kilometers of pipelines out of a total network length of 13,238 kilometers. The existing pipelines have deteriorated over time, leading to gas leaks, fire accidents, and safety concerns.
By implementing the project, Bangladesh aims to improve gas distribution and reduce methane emissions. However, the country needs to pass the New Development Bank Act 2023 in parliament to access funds from the NDB. Despite the potential to borrow up to $5 billion from the NDB, Bangladesh is currently cautious due to fluctuating market-based loan rates and higher borrowing costs from the NDB compared to other lenders like the Asian Infrastructure Investment Bank (AIIB).
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