Apr 30, 2025
| Daily Sun Report
The Asian Development Bank (ADB) has refuted recent criticisms by the civil society and others against the multilateral lender’s total $17.34 billion investment in Bangladesh’s energy sector since 1973.
Last week, representatives from NGO Forum on ADB, Coastal Livelihood and Environmental Action Network (CLEAN) and other allied organisations issued a warning at a press conference, saying ADB’s energy strategy is locking Bangladesh into carbon-intensive development pathways.
The groups said most of the ADB’s energy financing in the country has been directed toward fossil fuels despite global commitments to shift toward clean and renewable alternatives. Of the total 106 projects worth $17.34 billion, over 65% ($11.36b) lack any safeguard classification, undermining transparency and accountability.
Responding to the concerns, however, a spokesperson from the Manila-based lender has said it applies rigorous environmental and social safeguards to all projects. Every investment undergoes classification, due diligence, and public disclosure in accordance with the ADB Safeguard Policy Statement (2009). No project is approved without meeting these standards, the spokesperson said.
The detailed statement is as follows:
“ADB supports universal access to reliable and affordable energy services while promoting low-carbon transition in the region. Since Bangladesh became a member of ADB in 1973, ADB has been supporting the country’s projects and programs to expand energy access, reliability, and sustainability. ADB’s investments in energy have always been aligned with Bangladesh’s national development priorities and ADB’s energy policy at the time of project approval. Past investments in gas-based infrastructure aimed to address critical energy shortfalls at the time and thereby support the economy’s development. Over the decades, ADB-supported projects have contributed substantially to the expansion and modernization of Bangladesh's power and gas systems, resulting in near-universal electricity access, elimination of blackouts due to generation shortages, and improved power quality and reliability.
ADB’s investments in Bangladesh are guided by its Country Partnership Strategy 2020-2025, which commits to improving the reliability and quality of electricity supply, supporting expansion of renewable energy generation, strengthening the power transmission and distribution network, deepening energy efficiency measures, and promoting regional energy trade. ADB prioritizes energy sector reforms and helps strengthen energy sector institutions to improve their planning capacity. Transmission and distribution system strengthening has been identified as a prerequisite for the mass deployment of renewable energy in the power system. ADB has been prioritizing its sovereign operations in Bangladesh for the development of transmission and distribution facilities since 2020.
ADB appreciates constructive engagement with stakeholders, including civil society organizations, and welcomes dialogue on how to enhance the impact, sustainability, and inclusivity of ADB’s operations. ADB remains committed to working closely with all stakeholders—including governments, development partners, the private sector, and civil society— to deliver a low-carbon, sustainable, and resilient energy future.”
News link: ADB refutes experts’ concerns over energy investment