ADB Provides $100 Million Loan for Affordable Housing in Bangladesh
The Asian Development Bank (ADB) is providing a $100 million loan to make housing safer, more affordable and more resilient to natural disasters for low- and middle-income households in Bangladesh. The project, titled the Inclusive Affordable Housing Finance Project, will be implemented through the Palli Karma-Sahayak Foundation (PKSF) and is expected to directly benefit around 40,000 families. Running until 2031, the project will prioritise housing security for women and people living in disaster-prone areas.
PKSF announced the development on Thursday. On behalf of the government, Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky signed the loan agreement with the ADB. PKSF Senior General Manager Dr AKM Nuruzzaman signed the project agreement on behalf of the organisation. ADB Bangladesh Resident Mission Country Director Qingfeng Zhang signed both agreements on behalf of the bank.
According to PKSF, the loan will cover not only the construction of new houses but also the repair and improvement of existing, old or damaged homes. The project will prioritise low- and middle-income families who remain outside the formal banking system or face difficulties accessing loans.
Special attention will be given to residents of areas vulnerable to floods, cyclones and extreme heat. The project will emphasise climate-resilient housing designs and construction methods to provide long-term protection against natural disasters.
By supporting homes designed to withstand the effects of climate change, the project aims to significantly reduce damage to lives and property in disaster-prone communities.
