Dhaka, Bangladesh (BBN) – The Asian Development Bank and Bangladesh on Monday signed a $30 million loan deal for developing high demand domestic transport corridors.
The technical assistance loan agreement will help developing high demand domestic transport corridors having regional connectivity importance to accelerate growth and stimulate economic activity across South Asia and beyond, said a press statment of the ADB on Monday.
The technical assistance loan under the “Additional Financing for the Subregional Transport Project Preparatory Facility” will support feasibility studies and detailed design of transport projects including four-laning of 600 km road corridors.
It will also help the dual gauge coversion of Dhaka-Chittagong-Cox’s Bazar Railway corriodor, among others, the press statment added.
The financing is additional to an ADB technical assistance loan of $23 million for the “Subregional Transport Project Preparatory Facility”, which was approved in 2010.
Mohammad Mejbahuddin, the senior secretary of the Economic Relations Division (ERD); and Kazuhiko Higuchi, the country director for Bangladesh Resident Mission of ADB, signed the agreement.
The agreement was inked at a ceremony at ERD office in Sher-e-Bangla Nagar of Dhaka, the capital of Bangladesh.
“The assistance will help make domestic transport projects with high impact on regional trade ready for investment,” said Country Director Kazuhiko Higuchi.
“This will also support the government in achieving high project readiness for faster project implemenatation through preparation of detailed design, addressing climate resilience, and procurement and safeguard matters,” he said.
The Roads and Highways Department, and Bangladesh Railway will be the executing agencies for the project, which is due for completion in 2021.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members – 48 from the region.
In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.