Intense monitoring over the years resulted in steady progress in project implementation and portfolio management, leading to a gradual decline in cancellation and repurposing of Asian Development Bank (ADB)'s loans in Bangladesh – from $1 billion in 2024 to $450 million last year.

In 2026, an additional $245.6 million is projected for adjustment through cancellations and repurposing, according to a report presented at the Tripartite Portfolio Review Meeting on Asian Development Bank-funded projects that began yesterday (10 March) in Dhaka.

The report says in 2025, Bangladesh's portfolio of ADB projects saw improvements in both contract awards and disbursements compared to the previous year.

Contract awards reached $581.2 million, achieving 95.8% of the annual target of $611.3 million, while disbursements totalled $1.118 billion, or 82.5% of the target of $1.351 billion. The figures represent an overall increase in performance compared with 2024, reflecting progress in project implementation and portfolio management, it says.

The lender identifies those projects for cancellation or repurposing which show limited progress despite concerted efforts for improvement.

The ongoing portfolio of the ADB in Bangladesh stood at $10.21 billion covering 48 projects across six sectors as of 15 February 2026, according to the latest portfolio review report.

About 71% of the total portfolio is concentrated in the transport, energy, and water and urban development sectors, which remain the main focus of ADB-supported investments in the country.

The report said Bangladesh's ADB portfolio had steadily expanded from $6.5 billion in 2015 to $13.8 billion in 2023, reflecting strong growth in development financing. However, the pace of expansion slowed after the political unrest in 2024, leading to a gradual decline in the active portfolio through 2025.

In 2025, ADB approved eight new projects worth about $1.67 billion in Bangladesh. Of these approved projects, two have already achieved contract awards covering at least 30% of their loan amounts, indicating early progress in project implementation.

The two-day review meeting is co-chaired by Md Shahriar Kader Siddiky, secretary of Economic Relations Division, Hoe Yun Jeong, country director of ADB's Bangladesh Resident Mission, and the regional head for operations coordination of ADB's South Asia Department. Officials from relevant line ministries as well as executing and implementing agencies are participating in the meeting.

Targets for 2026

The report also outlined several performance targets. The government and ADB aim to achieve 100% of the contract award and disbursement targets in 2026, with $939 million in contract awards and $1.1147 billion in disbursements.

The five-year trend shows that the share of projects facing risks rose to 12% in 2025, the highest level in the past five years. These risks are mainly attributed to weak government coordination, poor project management, and low project readiness. The target for 2026 is to reduce the risk level to 5%.

Procurement performance will also be closely monitored. End-to-end procurement time, a key performance indicator for project implementation, is targeted to be reduced by 10% in 2026 compared to the 2025 level.

The average procurement time for high-value contracts awarded last year was 485 days, highlighting opportunities for efficiency improvements.

Sector-wise data show that the energy and transport sectors recorded the longest procurement times, taking as high as 794 days in some cases.

For low-value contracts, average times gradually declined from 218 days in 2020 to 172 days in 2025, reflecting continued improvement in overall procurement efficiency.

Long procurement timelines in Bangladesh's ADB portfolio are mainly caused by inadequate project preparation, weak project design, poor-quality bid documents, and lengthy government approval processes, the report reveals, suggesting measures such as preparing realistic procurement timelines, engaging experienced consultants, and using advanced procurement.

Sectoral priorities

According to the ADB report, disbursement projections for 2026 indicate that the transport, energy, water, and urban sectors will drive the majority. Together, transport, energy, water, and urban development account for about 71% of the annual disbursement target.

The transport sector projects include the SASEC Dhaka-Northwest Corridor Road Project, the Flood Emergency Project, and the Dhaka-Sylhet Corridor Road Investment Project.

In the energy sector, key projects include the Rupsha 800MW Combined Cycle Power Plant Project, the Bangladesh Power System Enhancement and Efficiency Improvement Project, and the Dhaka Power System Expansion and Strengthening Project, which together account for about 64% of the sector's projected disbursements.

In the water and urban sector, major projects include the Improving Urban Governance and Infrastructure Programme, the Khulna sewerage project, and the Dhaka water supply project.

To optimise its portfolio, ADB's Business Resilience Management (BRM) framework will strengthen monitoring of loans with unutilised funds.

To enhance overall portfolio performance, ADB's local office is undertaking several initiatives, including strengthening portfolio monitoring through regular consultations, supporting capacity development for project implementation, and cleaning up the portfolio through cancellations or the repurposing of unutilised funds.

A growing diesel shortage is threatening the operations of lighterage vessels that transport bulk cargo from ships anchored off Chattogram port to destinations across Bangladesh, raising concerns of disruptions in the country's supply chain.

Industry insiders warn that if the fuel crisis persists, unloading cargo at the port's outer anchorage and transporting goods through inland waterways could be severely affected, potentially triggering shortages in domestic markets ahead of Eid.

A lighterage vessel typically requires between 2,500 and 5,000 litres of diesel per trip, depending on capacity. These vessels usually collect fuel from bunkering tankers, but supplies have become scarce after the government introduced rationing measures amid a broader fuel shortage linked to the ongoing conflict in the Middle East.

Distributors say the volume of diesel they are receiving from state-run fuel marketing companies is now less than half of the actual demand. As a result, many vessels remain unable to depart even after loading cargo.

Key link in supply chain

Bangladesh's inland waterways play a critical role in transporting imported commodities across the country.

Bulk goods arriving at Chattogram port on large mother vessels are unloaded at the outer anchorage and transferred to smaller lighterage vessels, which then carry the cargo to different river ports nationwide. Around 1,500 lighterage vessels are involved in transporting imported goods from the mother vessels at the outer anchorage of Chattogram port.

Any disruption in this system could affect the flow of essential commodities, potentially causing shortages in markets during the upcoming Eid season and pushing up prices.

Vessel operators struggling

Mohammad Jahangir Alam, owner of ANJ Trading, operates a fleet of 60 vessels, including both owned and chartered ships.

If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle.
Mohammad Jahangir Alam, owner, ANJ Trading

His operations require around 2,05,000 litres of diesel each month. Under a distributor licence from Padma Oil Company, he normally lifts about 70,000 litres of diesel weekly to supply his vessels.

However, he said the company has not supplied any diesel since 3 March.

"For the past few days we have been managing local trips by giving only 400 to 500 litres of diesel to each vessel," Jahangir told TBS.

"If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle."

'Supply cut by 25%'

Padma Oil Company Managing Director Mofizur Rahman said distributors are still receiving diesel supplies, though at a reduced level.

"According to government instructions, we are supplying 25% less than usual," he told TBS.

He added that several fuel shipments have recently arrived.

"One vessel arrived yesterday, another today, and another is expected tomorrow. Fuel supply should return to normal within a few days," he said.

Port cargo handling at risk

Parvez Ahmed, convener of the Bangladesh Water Transport Coordination Cell, said around 73 mother vessels carrying various bulk commodities are currently waiting at the outer anchorage of Chattogram port.

The coordination cell allocates about 100 lighterage vessels daily to transport cargo from these ships to destinations across the country.

"These lighterage vessels require around 4,00,000 to 5,00,000 litres of fuel every day for their operations," he said.

Due to the shortage, many vessels loaded with cargo are now floating in the Karnaphuli River, unable to sail without adequate fuel.

"If the vessels cannot depart, cargo cannot be unloaded from the mother vessels. This could disrupt the supply of food and other essential goods and create instability in the market," Parvez said.

He added that the coordination cell has written to the government requesting uninterrupted fuel supply for lighterage vessels in order to maintain commodity prices, protect the reputation of Chattogram port and keep the national economy functioning smoothly.

Call for urgent action

Sarwar Alam Sagar, president of the Bangladesh Ship Handling and Berth Operator Association, warned that prolonged disruption in waterway cargo transport could collapse the country's supply chain.

"If cargo movement through waterways is disrupted due to the fuel shortage, the supply system could break down and create a humanitarian crisis," he said.

"The government should ensure adequate fuel supply for lighterage vessels to keep the supply chain running."

Thailand and Vietnam are urging public employees and businesses to adopt remote work as well as energy-saving habits, as the US-Israel war on Iran in the Middle East disrupts oil supplies and causes fuel price volatility.

Authorities in Thailand stated that government staff should transition to remote work when possible and requested that state offices maintain air conditioning at 26°C to save energy, reports Al Jazeera.

They also advised officials to cancel non-essential overseas travel.

In neighbouring Vietnam, the government has eliminated duties on various imported petroleum products to prevent shortages and stabilise the local market.

Furthermore, the Vietnamese government encouraged companies to permit remote work whenever feasible to reduce fuel demand.

It also recommended that citizens limit the use of private vehicles in favour of public transportation, cycling or carpooling.