ADB provides $490 million to Bangladesh for 2 projects

Asian Development Bank (ADB) is providing a loan of USD $490 million to implement two projects in Bangladesh.

The Economic Relation Division (ERD) and ADB on Monday signed two separate loan deals in Dhaka. 

Sharifa Khan, Secretary, ERD, Ministry of Finance, and Edimon Ginting, Country Director (Bangladesh Resident Mission) of ADB signed the loan agreement on behalf of their respective side.

Under the loan deals, Bangladesh will get $190 million for implementing a project on 'Rural Connectivity Improvement Project and $300 million for Urban Governance and Infrastructure Program.

The rural connectivity improvement project-second additional financing, Project is being implemented by the Local Government Engineering Department.

The objective of the project is to improve rural connectivity through the upgradation of rural infrastructures for enabling access to productive agriculture areas: enhance rural road infrastructure to all-weather standards with climate resilience and strengthen the capacity of stakeholders through effective training.

Under the project of improving urban governance and infrastructure program, the project will be implemented by the Local Government and Engineering Department.

The objective of the program is to achieve planned inclusive and sustainable urbanization, better city governance, and improved infrastructure. The implementation period will be from July 2023 to June 2028.

Both the loans' repayment periods will be 25 years including a grace period of 5 years. The interest rate on Concessional loans is 2.0 percent fixed.