An ADB press release yesterday half the fund will be from the bank's concessional lending instrument, the Asian Development Fund. This will be supported by a technical assistance grant program amounting to about $13.8 million.

The new results-based CSP is part of a joint strategy worked out with the UK's Department for International Development, government of Japan, and the World Bank, which together provide about 80% of development assistance to Bangladesh.

ADB Country Director in Bangladesh Hua Du said: "The ADB will now strengthen its engagement in sectors where reforms are difficult but are of fundamental importance to the growth of the national economy."

ADB will increase its assistance to improve local governance by helping to boost local governments' planning and delivery of services through partnerships with the private sector and civil society. These will be complemented by support to address critical constraints to good governance, including measures to combat corruption, improve access to justice, and build management skills.