Bangladesh: Strengthening Economic Management and Governance Program (Subprogram 2) (AIIB-001152)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 1, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
People's Republic of Bangladesh, Mirana Mahrukh
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 10, 2026

Disclosed by Bank May 11, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank's website, the proposed project aims to help Bangladesh mitigate the macroeconomic and social impacts of the Middle East conflict. It will help address urgent fiscal pressures arising from the conflict while also supporting medium-term structural reforms in economic management and resilience. The Middle East conflict is creating significant macroeconomic and social pressures on Bangladesh due to its heavy dependence on imported energy and food, integration into global trade and supply chains, and reliance on remittances from Gulf Cooperation Council (GCC) countries. Rising oil and food prices have sharply increased import costs and inflation, while LNG imports alone could add USD2–4 billion annually under sustained high prices, despite expanded energy subsidies of about USD2 billion. Energy constraints are affecting key sectors, including manufacturing and the export-oriented garments industry, transport and logistics, and agriculture, while disruptions in GCC economies pose risks to remittances. These combined shocks are widening fiscal and external deficits (estimated at 4.3% of GDP in FY2026), increasing inflationary pressures, and constraining growth and employment, with poverty expected to rise to 8.7% and around 600,000 jobs at risk.

The Program is proposed as a Policy-Based Co-financing (PBCF) in response to an eligible crisis under Asian Infrastructure Investment Bank’s (AIIB) Approach to Emergency Response (2023) to provide emergency budget support to help the Government of Bangladesh (GoB) mitigate the macroeconomic and social impacts emerging from the conflict in the Middle East. The Program supports key reforms aimed at addressing structural constraints in economic management and resilience, focusing on: (i) fiscal management; (ii) state-owned enterprise (SOE) governance and investment climate; and (iii) trade policy and logistics. The Program will be co-financed with the Asian Development Bank (ADB) as Policy-Based Lending (PBL). ADB is expected to provide a sovereign-backed loan of USD750 million for this Program. The Program will be executed by the Finance Division of the Ministry of Finance and implemented by relevant ministries and agencies. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Total project cost: USD1,000 million

 

AIIB financing: USD250 million

 

ADB financing: USD750 million 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Asian Infrastructure Investment Bank

Project Team Leader: Sangmoo Kim 

Title: Senior Investment Officer 

Email: sangmoo.kim@aiib.org 

ADB

Title: Sameer Khatiwada 

Title: Principal Public Management Economist 

Email: SKHATIWADA@adb.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works