Bangladesh’s economy grew at a healthy average of 6.6% in 2014-16, the ADB said.

But its government faces the challenge of achieving sustainable and inclusive growth in the face of rapid urbanisation.

Bangladesh’s infrastructure is also vulnerable to damage arising from flooding attributed to climate change.

In 2015, only 32% of the urban population had a piped water supply and 58% access to improved sanitation, the bank said.

The new loan will provide 600km of roads, 300km of drains and 180km of pipes for water supplies.

Work to improve governance would include building on earlier programmes to increase local revenue generation and install computerised tax and accounting systems.