The $260m loan marks the first tranche of ADB assistance for the Third Public-Private Infrastructure Development Facility (PPIDF 3), with a total of $526m.
Manmohan Parkash, Bangladesh director for the ADB, said: "The PPIDF 3 seeks to increase investments in infrastructure, including renewable energy and energy efficiency facilities.
"It will also help leverage private sector investments in PPP projects to reduce pressure on direct financing from the public budget to meet the growth target."
The bank’s board of directors approved the $526m multi-tranche loan under the PPIDF 3 earlier this year.