Govt, ADB ink $628m deals for dev, climate projects
The government and the Asian Development Bank (ADB) on Monday signed loan and grant agreements worth $628 million for the implementation of three infrastructural development and climate resilience projects.
Sharifa Khan, secretary of the Economic Relations Division under the Ministry of Finance, and Jiangbo Ning, deputy country director and officer-in-charge of the Bangladesh Resident Mission of ADB, signed the agreements on behalf of their respective sides, reads a press release.
The ADB will provide $278 million in loans for the "Third Public-Private Infrastructure Development Facility (Tranche 2)", $100 million for the "Greater Dhaka Sustainable Urban Transport Project (BRT-Gazipur)", $246 million for the "Coastal Towns Climate Resilience Project" and a grant of $4 million for the "Coastal Towns Climate Resilience Project".
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Alamgir Morshed, executive director and CEO of Infrastructure Development Company Limited, Quazi Muhammad Ferdous, chief engineer of Bangladesh Bridge Authority, and representatives of designated municipalities were present at the signing ceremony.
Third Public-Private Infrastructure Development Facility (Tranche 2)
The Infrastructure Development Company Limited will implement the project developed under the Public-Private Partnership (PPP) model. The project is estimated to be completed in June 2027.
The ADB loan for this project has two components: $262.29 million in Ordinary Operations (regular) and $16 million in Ordinary Operations (concessional) that will support investment in energy efficiency and renewable energy solutions. Both loans have a repayment period of 25 years, including a five-year grace period.
Greater Dhaka Sustainable Urban Transport Project (BRT-Gazipur)
The project will be executed by the Road Transport and Highways Division and implemented by the Roads and Highways Department, Bangladesh Bridge Authority and the Local Government Engineering Department.
The objective of the project is to improve the quality of urban life in Gazipur and Tongi by establishing an efficient, sustainable, environment-friendly, affordable, and safe urban transport system through the construction of a 20.50km long Bus Rapid System from Gazipur to Dhaka airport.
The ADB will provide an additional $100 million Ordinary Operations (regular) loan which is repayable in 25 years with a grace period of five years.
Coastal Towns Climate Resilience Project
The project will be executed by the Local Government Engineering Department under the Local Government Division with the objective to strengthen the climate and disaster resilience of the selected coastal towns at risk and improve the quality of life of women and the poor in the locality.
Fifteen municipalities of six districts of Barishal division, five municipalities of three districts of Khulna division and two municipalities of Shariatpur district of Dhaka division are covered within this project.
The estimated completion date of the project is 30 June 2029. The ADB's $250 million support for this project includes a $150 million Ordinary Operations (concessional) loan, a $96 million Ordinary Operations (regular) loan, and a $4 million grant. The loan is repayable in 25 years with a grace period of five years.
