Govt seeks $6.47b foreign loans for 13 projects, including Dhaka-Ctg 6-lane, MRT-2
The projects have a combined estimated cost of Tk1,06,439 crore, of which Tk79,583.47 crore has been proposed as foreign financing.
The government is seeking $6.47 billion in foreign loans from multilateral development banks and bilateral development partners to implement 13 new projects, including upgrading the Dhaka-Chattogram highway to six lanes, constructing MRT Line-2 and procuring 300 electric buses.
The projects have a combined estimated cost of Tk1,06,439 crore, of which Tk79,583.47 crore has been proposed as foreign financing.
The proposals will be placed before the Foreign Assistance Search Committee today (8 October) to identify potential development partners and explore financing arrangements, according to officials at the Economic Relations Division (ERD).
The meeting will be chaired by ERD Secretary Shahriar Quader Siddique.
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Dhaka-Chattogram highway expansion
Among the largest proposals is upgrading the 232.76-kilometre Dhaka-Chattogram highway to a six-lane access-controlled expressway at Tk71,850 crore, including Tk55,080 crore in foreign loans and Tk16,770 crore in government funding.
The project has received in-principle Planning Commission approval, with completion targeted for January 2027-December 2032, subject to financing.
The RHD has completed a feasibility study and detailed design for the six-lane expressway, with service lanes on both sides for local and slow-moving traffic and designated entry and exit points.
Existing intersections will be converted into interchanges, with flyovers and underpasses, while urban sections will be elevated to ease congestion.
The Asian Development Bank (ADB) has expressed interest but may not finance the project alone. An ADB-led co-financing arrangement with the Asian Infrastructure Investment Bank (AIIB) or Japan International Cooperation Agency (Jica) is therefore being considered, with the ERD to decide.
Cumilla-Brahmanbaria highway
The government is seeking a new development partner to four-lane the Cumilla (Mainamati)–Brahmanbaria (Dharakhar) national highway, dropped from India's third Line of Credit (LoC-III).
The project will cost Tk7,188.66 crore, including Tk4,378.67 crore in government funding and Tk2,810.65 crore in foreign loans. The government is considering multilateral and other development partners, with the ADB expressing preliminary interest.
The Mainamati-Sarail highway is a key link between Chattogram and Sylhet and is expected to support industrial and agriculture-based activities along the route.
Approved on 13 September 2022 under joint Bangladesh-India financing, the project was scheduled for 1 July 2022-30 June 2026 but remains incomplete. Once implemented, it is expected to increase road capacity and ease passenger and goods movement between the two regions.
Additional financing for Gabtoli-Narayanganj MRT
The government also plans to build MRT Line-2 from Gabtoli to Narayanganj, with a branch from Nayabazar to Sadarghat. The project is estimated to cost Tk60,962 crore, including Tk45,924 crore in proposed foreign financing.
The World Bank has already agreed to provide a $72 million loan, but additional financing will be needed. The government will therefore approach other development partners for co-financing, with the project placed before the Foreign Assistance Search Committee to explore additional foreign loans.
300 electric buses procurement
The government plans to replace diesel-powered buses in the Bangladesh Road Transport Corporation (BRTC) fleet with electric buses under a Tk2,713 crore project proposed for July 2026-June 2029.
The project envisages procuring 300 air-conditioned single-decker electric buses, with the Road Transport and Highways Division overseeing implementation and BRTC as the executing agency.
The government will provide Tk703 crore, while Tk2,009.77 crore is proposed as a development partner loan, with South Korea's Economic Development Cooperation Fund (EDCF) named as the potential financier.
Solar power, urban projects
The government is also planning to establish two 60MW solar power plants in Payra, Patuakhali, and Munshiganj to expand the use of renewable energy, at a combined estimated cost of around Tk1,505 crore, with foreign financing proposed for both projects.
The Payra solar power plant has an estimated cost of Tk783 crore, while the proposed Munshiganj plant is expected to cost Tk718.72 crore.
Proposals for foreign financing for three urban development projects will also be placed before the committee.
These include Tk36.85 crore for the "Integrated Project for Revitalization of Old Dhaka", Tk4,447 crore for the "Rayerbazar Sewerage System Development Project" and Tk3,050 crore for the "Urban Water Supply and Sanitation Project in Selected City Corporations and Municipalities of Bangladesh (UWSSP)".
The ERD will assess potential development partners and financing options for the projects before proceeding with negotiations with the respective lenders.
