Asian Development Bank &

Bangladesh
FACT SHEET
Table 1. Bangladesh: Development Indicators
Non-MDG Population in millions Annual population growth rate (%) Adult literacy rate (%) Percent of population in urban areas MDG Percent of population living on less than $1.25 a day Percent of population living below the national poverty line Under-5 mortality rate per 1,000 live births Percent of population using an improved drinking water source MDG = Millennium Development Goal. Sources: ADB. 2011. Basic Statistics 2011. Manila; UNESCO. 2011. Institute for Statistics Data Centre; World Bank. 2011. World Bank Development Indicators Online. 49.6 (2005) 40.0 (2005) 52.0 (2009) 80.0 (2008) 146.06 (2010) 1.3 (20082010) 55.0 (2008) 27.6 (2009)

Table 2. Bangladesh: Economic Indicators, 20062010

Economic Indicator Per capita GNI, Atlas method ($) GDP growth (% change per year) CPI (% change per year) Unemployment rate (%) Fiscal balance (% of GDP) Export growth (% change per year) Import growth (% change per year) Current account balance (% of GDP) External debt (% of GNI) 2006 450 6.6 7.2 4.2 (3.2) 21.5 12.1 1.3 26.4 2007 480 6.4 7.2 ... (3.2) 15.8 16.6 1.4 25.8 2008 520 6.2 9.9 ... (4.7) 17.4 25.6 0.9 24.3 2009 580 5.7 6.7 5.0 (3.9) 10.1 4.2 2.7 22.3 2010 5.8 7.3 (4.5) 4.2 5.4 3.7 ...

Bangladesh joined the Asian Development Bank (ADB) in 1973. Cumulative lending amounts to about $12.1 billion for 212 loans, with $202.7 million for technical assistance grants for 363 projects. The country is one of the largest borrowers of concessionary Asian Development Fund resources. The loans and technical assistance grants have supported all key sectors, including energy, transport, social infrastructure, agriculture, and natural resources. ADB has also supported eight private sector projects worth $242.18 million, including the Meghnaghat Power Projectthe first build-own-operate power project in the countryand GrameenPhone, which substantially expanded rural access to mobile phone services. In the late 1980s, ADB was primarily a lender for growth-promoting investment projects. In the 1990s, loans became more closely linked to institutional and policy support, with program loans targeted at the agriculture, industry, railway, finance, and energy sectors. There was also a growing emphasis on social infrastructure with focus on human development, gender equality, and poverty reduction. In line with the 1999 country operational strategy, ADB expanded its support into new areas in urban and rural infrastructure, and education to encompass decentralization and good governance. The validity of the results-based country partnership strategy, 20062010 lapsed at the end of December 2010. Preparations for the next country partnership strategy, 20112015 have been initiated. This strategy will be aligned with ADBs long-term strategic framework, Strategy 2020, and will support inclusive growth, environmentally sustainable growth, and regional cooperation and integration. The country partnership strategy, 20112015 will be compatible with governments priorities in the Sixth Five-Year Plan under preparation, and will be prepared keeping in view the recommendations of the 2009 country assistance program evaluation conducted by ADBs Independent Evaluation Department. The new country partnership strategy is expected to be prepared by September 2011, following the streamlined business process, after the Sixth Five-Year Plan is finalized.

Impact of Assistance
An array of successful projects illustrates the broad impact of ADBs assistance. With cofinancing from ADB, the World Bank, and the Government of Japan, for example, the Jamuna Bridge established an important land connection between the poorer northwest region of the country and the eastern half, which includes the capital, Dhaka, and Chittagong port in the southeast. The bridge has reduced transport costs, boosted trade, and increased labor migration. It has helped reduce poverty and increase economic and social opportunities, especially in the northwest. National estimates suggest that at least 1 million people were lifted out of poverty because of the positive impact of the bridge, which was opened to traffic in 1998. The success of an innovative program involving nongovernment organizations (NGOs) in providing health care in government clinics has prompted a second phase of the project to expand into two more cities and five smaller municipalities. In the first phase, the Urban Primary Health Care Project established health care centers in low-income areas of four major cities. Nongovernment organizations are subcontracted through these centers to provide primary health care services.

( ) = negative, ... = data not available, CPI = consumer price index, GDP = gross domestic product, GNI = gross national income. Sources: ADB. 2011. Asian Development Outlook 2011. Manila; ADB staff estimates; World Bank. 2011. World Development Indicators Online.

As of 31 December 2010

The project has supported preventive and curative health care, and family planning services, and provided advice, counseling, and health and hygiene advocacy. Prenatal and postnatal health care and in-house delivery services provided for poor women have greatly lowered the risk of maternal mortality. By reducing child and maternal mortality, the project will help Bangladesh achieve the Millennium Development Goals for child mortality and maternal health. Women and children will constitute more than 75% of all project beneficiaries. The project also helps female victims of domestic violence get legal assistance. The Second Primary Education Development Program, approved in 2003, is supported by 11 development partners, led by ADB, and aims to reduce poverty and support sustainable economic development through universal primary education, and by raising learning standards and student achievements. The program is helping establish a primary education civil service cadre, improved governance at the service delivery level, improved teacher training, and more inclusive education. The ADB-supported Bangladesh Good Governance Program, 20062007 helped the government carry out reforms in the AntiCorruption Commission, separate the judiciary from the executive, and recruit 604 judicial officers. ADB has also supported corruption risk assessments and mitigation planning for major sectors and agencies, including Bangladesh Railways; Chittagong Port Authority; and the power, education, and health sectors, and has helped local governments become better equipped to develop and maintain infrastructure, mobilize resources, manage waste, govern with transparency, increase citizens (including womens) participation, and reduce poverty. In 2010, ADB approved 10 loans for a total amount of $1,249 million and 15 technical assistance projects for a total of $7.58 million. The loan projects include: $615 million ($539 million ordinary capital resources and $76 million Asian Development Fund [ADF]) for construction of the multipurpose bridge across the Padma River. This bridge is the first fixed river crossing for road traffic, linking the southwest of the country with the northern and eastern regions. The loan for Padma Bridge is the largest project assistance that ADB has provided to Bangladesh. $261 million ordinary capital resources and $5 million (ADF) under the Natural Gas Access Improvement Project to expand capacity and improve efficiency in natural gas production, transmission, and distribution systems (US$266 million). $100 million (ADF) to facilitate the exchange of electric power between India and Bangladesh under BangladeshIndia Electrical Grid Interconnection Project. $25 million (ADF) to improve transparency and accountability in tax and land record administrations under Strengthening Governance Management Project $23 million (ADF) under the Subregional Transport Project Preparatory Facility to increase subregional trade among South Asian countries, especially from, to, and through Bangladesh. $120 million (ADF) to improve urban environment and infrastructure services based on effective regional urban planning under City Region Development Project. $60 million (ADF) to enhance rural peoples access to social services, such as health and education, and to enhance economic opportunities under the Sustainable Rural Infrastructure Improvement Project. $40 million (ADF) for the Second Crop Diversification Project to improve efficiency and value addition of high value crop production.

Table 3. Bangladesh: 2010 Loan, Technical Assistance, and Grant Approvals ($ million)
Loans Sovereign 1,249.00 = nil. Cumulative Lending (as of 31 Dec 2010) Cumulative Disbursements (as of 31 Dec 2010) : $12,134.3 million : $8,393.2 million Nonsovereign Technical Assistance 7.58 Grants Total 1,256.58

Table 4. Bangladesh: Cumulative ADB Lending as of 31 December 2010

Sector Agriculture and Natural Resources Education Energy Finance Health and Social Protection Industry and Trade Public Sector Management Transport and ICT Water Supply and Other Municipal Infrastructure and Services Multisector Total ICT = information and communication technology.
a

Loans (no.) 57 18 35 16 5 16 6 35 14 10 212

Amount ($ million) 1,978.45 897.16 2,895.25 401.73 164.10 564.80 919.85 2,485.70 830.60 996.70 12,134.34

%a 16.30 7.39 23.86 3.31 1.35 4.65 7.58 20.48 6.85 8.21 100.00

Total may not add up because of rounding.

Table 5. Bangladesh: Project Success Rates

Sector Agriculture and Natural Resources Education Energy Finance Health and Social Protection Industry and Trade Transport and ICT Water Supply and Other Municipal Infrastructure and Services Multisector Total Year of Approval 1970s 1980s 1990s 2000s ICT = information and communication technology.
a

No. of Rated Projects/ Programs 38 12 13 10 4 5 18 6 4 110 23 35 47 5

47.37 66.67 76.92 30.00 25.00 60.00 77.78 66.67 100.00 59.09 26.09 57.14 72.34 100.00

Based on aggregate results of project/program completion reports (PCRs), PCR validation reports (PCRVRs), and project/program evaluation reports (PPERs) using PCRVR or PPER ratings in all cases where PCR and PCRVR/PPER ratings are available.

Sources: PCRs, PCRVRs, and PPERs containing a rating circulated as of 31 December 2010.

Table 6. Bangladesh: Portfolio Performance Quality Indicators for Sovereign Lending, 20092010
Number of Ongoing Loans (as of 31 Dec 2010) 2009 ($ million) Contract Awards/Commitments Disbursements Loans at Risk (%) = nil. 1,209.4 1,068.0 56 2010 ($ million) 458.1 469.1 3.6

Partnership
The results-based country partnership strategy, 20062010 was an important step toward commitments made at the Paris High-Level Forum on Aid Effectiveness, in early 2005, between developing country

governments and development partners. Implementation of the strategy, which ended in December 2010, required continued strong partnership with all stakeholders in Bangladesh, including the private sector, civil society, and development partners. Consultations with stakeholders and partners such as civil society and/or NGOs, academia, private sector and development partners have been undertaken for preparing the next country partnership strategy, 20112015. ADB also cooperates extensively with civil society organizations in Bangladesh to strengthen the effectiveness, quality, and sustainability of its services. An example is the Second Urban Primary Health Care Project.

Table 7. Bangladesh: Projects Cofinanced, 1 January 200631 December 2010

Cofinancing Projects* Grants Official loans Technical Assistance Grants No. of Projects 10 5 6 6 Amount ($ million) 1,953.60 147.60 1,806.00 3.25

*A project with more than one source of cofinancing is counted once.

Table 8. Bangladesh: Share of Procurement Contracts

2009 Item Goods and Works Consulting Services Amount ($ million) 846.18 21.70 % of Total 8.21 5.00 2010 Amount ($ million) 235.17 25.97 % of Total 3.62 6.25 Cumulative (as of 31 Dec 2010) Amount ($ million) 4,497.27 133.87 % of Total 4.60 1.72

Cofinancing and Procurement

Cofinancing operations enable ADBs financing partnersgovernment or their agencies, multilateral financing institutions, and commercial organizationsto participate in the financing of ADB projects. The additional funds are provided in the form of grants, official or commercial loans, and syndications. As of year-end 2010, cumulative direct value-added cofinancing for Bangladesh amounted to $2.87 billion for 30 investment projects and $60.4 million for 74 technical assistance projects. In 2010, three projects received loan cofinancing: $45.0 million from the Korea Export-Import Bank for the Natural Gas Access Improvement Project; $10.0 million from International Fund for Agricultural Development (IFAD) for the Participatory Small-Scale Water Resources Sector; $140.0 million from Islamic Development Bank (IsDB); $300.0 million from JICA, Japan; and $1,200.0 million from the World Bank for the Padma Multipurpose Bridge project. A grant of $15.90 million was provided by KfW, Germany for the Sustainable Rural Infrastructure Improvement project. A summary of projects with cofinancing from 1 January 2006 to 31 December 2010 is available at www.adb.org/Documents/Fact _Sheets/Bangladesh/cofinancing.asp From 1 January 1968 to 31 December 2010, contractors and suppliers were involved in 186,186 contracts for ADB loan projects worth $97.66 billion. During the same period, contractors and suppliers from Bangladesh were involved in 20,292 contracts for ADB loan projects worth $4,497.27 million. From 1 January 1968 to 31 December 2010, consultants were involved in 11,643 contracts for ADB loan projects worth $4.63 billion. During the same period, consultants from Bangladesh were involved in 408 contracts for ADB loan projects worth $92.61 million. From 1 January 1968 to 31 December 2010, consultants were involved in 22,350 contracts for ADB technical assistance projects worth $3.15 billion. During the same period, consultants from Bangladesh were involved in 575 contracts for ADB technical assistance projects worth $41.26 million. A summary of procurement contracts awarded to companies and consultants from Bangladesh for goods and works, and consulting services can be found at www.adb.org/Documents/Fact_Sheets/ Bangladesh/procurement.asp

Table 9. Bangladesh: Contractors/Suppliers Involved in ADB Loan Projects, 1 January 200631 December 2010
Contractor/Supplier Energypac Engineering Ltd. AML-GITEC-ICCL JV. Monico Ltd. Eastern Bank Ltd. BRAC Islam Trading Consortium Ltd. Abdul Monem Ltd. B. J. Geo-Textile Ltd. SQ & Cable Co. Ltd. Areva Energietechnik Multisector Transport and ICT Multisector Finance Agriculture and Natural Resources Multisector Multisector Agriculture and Natural Resources Energy Energy Sector Contract Amount ($ million) 33.09 22.21 15.11 14.59 12.47 11.88 11.87 10.25 9.19 8.12

ICT = information and communication technology.

Table 10. Bangladesh: Top Consulting Firms Involved in ADB Loan Projects, 1 January 200631 December 2010
Consultant Resource Planning and Management Consultant Bets Consulting Services Ltd. SODEV Consult SMEC International Pty Ltd., Bangladesh E-Gen Consultants Ltd., Bangladesh Chittagong City Corporation S.F. Ahmed & Co. Maxwell Stamp Ltd. Community Development Association (CDA) Bangladesh Rural Integrated Development Individual consultants Number of Times Contracted 2 3 2 2 1 2 2 3 2 2 15 Contract Amount ($ million) 5.28 5.25 4.51 3.92 3.00 2.81 1.97 1.30 1.20 1.20 0.31

Table 11. Bangladesh: Top Consultants (Individual Consultants and Consulting Firms) Involved in ADB Technical Assistance Projects, 1 January 200631 December 2010
Consultant Maxwell Stamp Ltd. E-Gen Consultants, Ltd. HB Consultants Ltd. Uniconsult International Ltd. South Asia Management & Engineering Services Pvt. Bangladesh Women Chamber of Commerce & Industry Centre for Development Studies (CDS) Technoconsult International Ltd. Institute of Governance Studies, BRAC University Institute of Water Modelling (IWM) Individual consultants Number of Times Contracted 11 3 2 2 1 1 1 1 1 2 204 Contract Amount ($ million) 5.51 3.04 1.47 1.07 0.50 0.49 0.42 0.40 0.36 0.35 4.61

Operational Challenges
Weak governance and structural problems continue to constrain Bangladeshs development. The 2010 country portfolio review mission identified actions needed to improve several key areas of project implementation, specifically the project approval process, procurement, and financial management. The country partnership strategy, 2006 2010 emphasized the need to design projects that are better prepared for implementation. This means projects that are simpler; take into consideration capacity constraints; and include covenants that are realistic, focused, and properly sequenced.

Future Directions
The Bangladesh country operations business plan, 20112013, approved in July 2010, comprises 24 projects totaling about $3.2 billion, including assistance for primary education, and energy and transport sector. The technical assistance program for 20112013 consists of 41 projects, with an annual allocation of about of $7.9 million. Assistance to the transport sector will help reduce the cost of doing business and improve the investment climate, while ADB will support investments and institutional reforms in the power and gas sectors to ensure reliable and affordable access for the majority of the population. Efforts will continue to improve the quality and relevance of education by building capacity and improving policies and the institutional environment. In urban development and water supply and sanitation, ADB will focus on strengthening municipal management and local resource mobilization, promoting a clean urban environment, and improving basic living conditions in secondary towns and cities. In agriculture, ADB will support government efforts to develop and adopt productivity-enhancing technologies and to improve rural infrastructure and local governance, in collaboration with other development partners. Assistance for flood management and irrigation systems will boost agricultural productivity and encourage livelihood diversification. In the coming year, under the Strengthening Governance Management Project approved in 2010, ADB will support e-governance, online submission of tax returns, and land record digitization, continuing a long history of support for good governance in Bangladesh.

Table 12. ADB Assistance to Developing Member Countries, 20092010a

2009 ($ million) Lending ADF, Sovereign OCR, Sovereign OCR, Nonsovereign Public Sector Private Sector Equity Investments Grantsb Technical Assistance 13,215.89 2,210.31 10,567.71 437.87 134.30 303.57 220.00 1,113.52 267.00 1,052.73 243.00 1,052.86 326.54 246.78 10.45 (5.44) 22.30 2010 ($ million) 11,462.27 2,212.57 8,196.96 1,052.73 Change (%) (13.27) 0.10 (22.43) 140.42

( ) = negative, ADF = Asian Development Fund, OCR = ordinary capital resources.

a b

Excludes terminated loans, equity investments, technical assistance, and grants. Excludes grant cofinancing not administered by ADB.

About Bangladesh and ADB

ADB Membership Joined 1973 Shareholding and Voting Power Bangladesh is the 13th largest shareholder among regional members and the 20th largest overall. Figures are as of 1 April 2009, before ADBs Board of Governors voted to adopt the fifth general capital increase. The process is ongoing, and the final figures are expected to be available by 30 June 2011. Current subscription levels are available from the Office of the Secretary. Shares held 36,128 (1.02%) Votes 49,360 (1.11%)

Contacts
Bangladesh Resident Mission Plot # E-31, Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh Tel +880 2 815 6000 to 6016 Fax +880 2 815 6018/815 6019 [email protected] www.adb.org/BRM ADB Headquarters 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 [email protected] Economic Relations Division, Ministry of Finance Dhaka, Bangladesh Tel +880 2 811 2641 Fax +880 2 811 3088/716 6200 [email protected] Useful ADB websites Asian Development Bank www.adb.org Country website www.adb.org/bangladesh Asian Development Outlook www.adb.org/documents/books/ado/2011/ado2011-ban.pdf Annual Report www.adb.org/Documents/Reports/Annual_Report/2010/ default.asp

Ashok K. Lahiri is the Executive Director and Bounleua Sinxayvolavong is the Alternate Executive Director representing Bangladesh on the ADB Board of Directors. Thevakumar Kandiah is the ADB Country Director for Bangladesh. The Bangladesh Resident Mission (BRM), the first field office of ADB opened in 1982, provides the primary operational link between ADB and the government, private sector, and civil society stakeholders in its activities. BRM engages in policy dialogue and acts as a knowledge base on development issues in Bangladesh. The Bangladesh government agency handling ADB affairs is the Ministry of Finance. About the Asian Development Bank ADB is a multilateral development bank owned by 67 members, 48 from the region and 19 from other parts of the world. ADBs main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance (TA). In 2010, lending volume was $11.46 billion (106 projects), with TA at $175 million (243 projects) and grant-financed projects at $982 million (40 projects). In addition, $3.67 billion in direct value-added loan, grants and TA cofinancing was generated. From 1 January 2006 to 31 December 2010, ADBs annual lending volume averaged $10.3 billion. In addition, TA and investment grants funded by ADB and special funds resources averaged $692.6 million and $175.4 million in TA over the same period. As of 31 December 2010, the cumulative totals excluding cofinancing were $167.1 billion in loans for 2,328 projects in 42 countries, $4.4 billion in 163 grants, and $3.15 billion in TA grants, including regional TA grants.

Depository Libraries www.adb.org/Publications/Depositories/ban.asp

In this publication, $ refers to US dollars. Data are as of 31 December 2010 unless otherwise indicated. Fact sheets are updated annually in April.

April 2011