Govt signs $200m loan agreements with ADB to boost urban infrastructure

The government has signed $200 million loan agreements with the Asian Development Bank or ADB, the Bangladesh Resident Mission of the Manila-based bank has said in a statement.

The agreements were signed at the Economic Relations Division or ERD at Dhaka’s Sher-e-Bangla Nagar on Tuesday.

Kazi Shofiqul Azam, Secretary, ERD, and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission of ADB, signed the agreements.

The agreements aim to strengthen urban infrastructure, service delivery, and management in Bangladesh’s municipalities, according to a media release.

“The ongoing project for improving urban infrastructure and services in 30 municipalities nationwide has been progressing well,” the statement quoted Higuchi as saying.

“The strong performance has enabled additional loans to further enhance the benefits of the project and bring them to a larger group of people around the country," he added.

The additional financing for the project, Third Urban Governance and Infrastructure Improvement, will increase the total ADB loans for the project to $325 million.

It is expected to help continue improving the priority infrastructure and services, and strengthening their managing capacities in 30 existing and five newly added municipalities with a total population of 3.1 million, says the release.

The project, due for completion in 2021, will contribute to Sustainable Development Goal 11: making cities and human settlements inclusive, safe, resilient, and sustainable.

The project, first approved in 2014, builds on two successful previous projects: the first performance-based urban project completed in 2007 with a $65 million loan that supported management and infrastructure improvements in 27 municipalities, and the second project completed in 2016 with an $87 million loan that broadened the support to 51 municipalities. 

ADB is dedicated to reducing poverty in Asia and the Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB is celebrating 50 years of development partnership in the region.

It is owned by 67 members—48 from the region. In 2016, ADB assistance totalled $31.7 billion, including $14 billion in cofinancing.