Dhaka, Bangladesh (BBN)-The Asian Development Bank has provided Bangladesh with $82 million in loans and $12 million in grants to protect coastal towns from the ravages of natural disasters and climate change.
Saifuddin Ahmed, joint secretary of the Economic Relations Division (ERD), and Kazuhiko Higuchi, the country director of Bangladesh Resident Mission in ADB, signed two agreements in this regard at ERD in Sher-e-Bangla Nagar of Dhaka, said a press statement of the ADB.
The assistance will support eight vulnerable secondary coastal towns to build up their climate resilience and disaster preparedness.
The towns are: Amtali, Galachipa, Mathbaria, Pirojpur, Barguna, Bhola, Daulat Khan, and Kalapara.
The towns were selected based on their needs, population size and density, and level of past investments.
The government will provide $23.1 million equivalent for the project.
The project is estimated to cost a total of $117.1 million, and scheduled to be completed by 2020.
"The project supports towns in need of assistance as identified under the government's Coastal Development Strategy and Strategic Program for Climate Resilience," said Country Director Kazuhiko Higuchi.
"The support will be in two stages-for infrastructure required for climate resilience, and economic infrastructure; the pace of these supports will be aligned with the progress in various municipal planning and services."
The project takes a holistic and integrated approach to urban development.
It will help improve drainage, water supply, sanitation, cyclone shelters, and other municipal infrastructure including emergency access roads and bridges, solid waste management, bus terminals, slum improvements, boat landings, and markets.
Coastal areas of the country, with a population of over 38 million, are heavily exposed to cyclones, storm surges, and sea level rises, which are expected to become more frequent and extreme with the onset of climate change.
Of the $82 million ADB loan, $52 million is from the concessional Asian Development Fund (ADF) resources while the rest $30 million comes from the ADB Strategic Climate Fund (SCF).
The ADF loan will have a 25-year term, including a grace period of 5 years, and an interest rate of 2.0percent per annum during the grace period and thereafter.
The ADB-SCF loan will have a 40-year term, including a grace period of 10 years and an annual service charge of 0.10percent.
The ADB-SCF is also providing $10.4 million in grant for the project.
The Sanitation Financing Partnership Trust Fund (the Bill & Melinda Gates Foundation) under the Water Financing Partnership Facility will provide another grant equivalent to $1.6 million.
The Ministry of Local Government, Rural Development and Cooperatives (MLGRDC) acting through its Local Government Engineering Department (LGED) and the Department of Public Health Engineering (DPHE) will be the Executing Agencies for the project.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environment.
BBN/ANS-29June14-3:40pm (BST)
