Economy
Bangladesh, ADB Ink $250M Loan Deal for Social Resilience Program
The Asian Development Bank (ADB) and the government of Bangladesh have signed a $250 million loan agreement to bolster Bangladesh’s social protection system.
Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, ADB’s Country Director, signed the agreement today at a ceremony held at the ERD in the capital.
“The Second Strengthening Social Resilience Program aims to accelerate reforms by increasing the coverage and efficiency of protection, improving financial inclusion for disadvantaged people, and strengthening the response to diversified protection needs,” stated Country Director Edimon Ginting.
Building on the first Strengthening Social Resilience Program completed in June 2022, this second initiative seeks to improve the policy, regulatory, and institutional framework for social protection in Bangladesh. This program aligns with the government’s Action Plan Phase II of the National Social Security Strategy (2021-2026), aiming to enhance the social protection system’s protective and preventive capabilities.
According to a press release, the program will improve efficiency in social protection program management, increase protection for the most vulnerable populations, and expand the scope of social protection by introducing contributory schemes. These measures aim to reduce vulnerability, social exclusion, and the risk of further poverty.
The program will introduce a beneficiary verification scheme for cash-based social protection programs to minimize leakages. It will also merge two cash-based protection programs for people with disabilities to improve efficiency and effectiveness.
To address climate vulnerability, the program will integrate climate adaptive measures into social protection, including identifying individuals most at risk from climate change-induced disasters to ensure appropriate assistance.
ADB’s support will enhance protection for vulnerable women and transgender people by increasing the number of beneficiaries under the widow allowance program and extending the livelihood support program for transgender individuals.
Additionally, Bangladesh Bank will double its funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs to improve access to financial services for women small business operators.
Another key objective of the program is to strengthen the governance mechanism of the employment injury scheme pilot, particularly in the ready-made garments sector. It also supports establishing a tripartite committee comprising workers’ associations, employers’ associations, and the government to advance social protection for workers under the Ministry of Labour and Employment, a crucial step in developing the country’s social insurance schemes.
To support the implementation, technical and policy analyses, and capacity building of relevant government agencies, ADB will provide a $1 million grant from its Technical Assistance Special Fund (TASF 7) and another $1 million grant from the ADB-administered Community Resilience Partnership Program Trust Fund under the Community Resilience Financing Partnership Facility.
Chief Adviser Prof Muhammad Yunus on Thursday paid tribute to the Armed Forces Division by placing a floral wreath at its headquarters.
Prof Yunus, who visited the division as part of his official duties, laid the wreath to honor the sacrifices and dedication of the members of the Armed Forces.
Following the wreath-laying ceremony, he signed the visitor’s book.
Chief Election Commissioner (CEC) Kazi Habibul Awal, along with four other election commissioners, announced their resignation during a press conference today at the Election Commission (EC) building. The resignation follows growing speculation and pressure.
CEC Awal stated, “In this changed situation, I and other commissioners have decided to step down. We’re handing over our resignation letters to the EC Secretary to send it to the President.” After submitting the letters, the CEC and some commissioners quickly left the premises, with no clear explanation for the absence of two election commissioners.
The resignations come amid increasing unrest tied to the registration of political parties such as Nagarik Oikya and Gono Odhikar Parishad. Sources revealed the CEC felt unsafe due to aggressive behavior from activists, prompting the decision to step down.
Protesters outside the EC building hurled shoes at vehicles carrying Election Commissioners Rashida Sultana, Md Alamgir, and Anisur Rahman as they left. Meanwhile, preparations for their exit had already been underway, with the commissioners reportedly relocating personal belongings from their offices.
The commission, appointed in February 2022 for a five-year term, had previously expressed confusion over demands for their resignation, maintaining they had conducted fair elections. However, internal discussions led to the collective decision to resign earlier than expected.
The government will now purchase LNG from the international spot market through open tender instead of negotiation.
Cabinet Committee on Economic Affairs (CCEA) in a meeting on Wednesday in principle approved a proposal in this regard.
Adviser of the interim government for Finance Dr. Salehuddin Ahmed, who presided over the meeting, said that the government will procure LNG through open tender.
The Energy and Mineral Division of the Ministry of Power, Energy and Mineral Resources placed the proposal where it sought approval to import LNG from 23 listed companies in the international spot market.
The adviser said that though such 23 companies were enlisted by the previous Awami League government and signed Master Sales and Purchase Agreement, they will remain unchanged.
He said that instead of applying the Speedy Increase of Energy and Power Supply (Special) Act 2010, the interim government will follow the Public Procurement Rules 2008 to ensure the competitive bidding process.
“We don’t want to change them as we wanted to import LNG quickly, ensuring proper competition among the suppliers,” he told reporters.
Committee also approved another proposal in principle to sign a contract to import urea fertiliser for the 2024-25 fiscal year from Fertiglobe Distribution Limited, UAE, on a G-to-G basis.
Meanwhile, the Cabinet Committee on Government Procurement (CCGP) in a meeting, presided over by the Adviser for Finance, approved 3 proposals for import of lentil and fertiliser.
As per the proposal, the Trading Corporation of Bangladesh will procure 10,000 metric tons (MT) of lentil from local firm Sahara Enterprise at a cost of Tk 98.20 crore with each kg priced at Tk 98.20.
The Commerce Ministry which moved the proposal on behalf of the TCB in the meeting mentioned in the proposal that the supplier firm was selected through open tender.
The CCGP approved two separate proposals of the Industries Ministry under which Bangladesh Chemical Industries Corporation will import 30,000 MT of bulk granular urea fertiliser from Fertiglobe Distribution Limited, UAE, under state to state contract at a cost of Tk 121.48 crore.
Each metric ton of fertiliser will cost $343.17.
Another 30,000 MT of bagged granular urea fertiliser will be procured from the local Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 116.99 crore with each metric ton costing $330.50.
