ADB provides $150 million for developing fast-growing Dhaka, Khulna city regions

The government has signed agreements for $150 million in loans to finance crucial infrastructure such as roads and drains and build capacity in two densely populated and fast-growing city regions of Dhaka and Khulna.

Economic Relations Secretary Monowar Ahmed ADB Country Director Manmohan Parkash, signed the agreements at a ceremony in Dhaka on Tuesday, according to a media release.

The Second City Region Development Project builds on a similar such project which was completed in 2018, ADB said.

The project will bolster growth, enhance living standards, and improve mobility, flood resilience, and solid waste management in Dhaka and Khulna city regions, Parkash said.

“By improving institutional capacity and community awareness, the project will strengthen municipal governance, institutional coordination, and sustainable service delivery.”

“It will also support preparation and implementation of comprehensive frameworks for integration of urban development with south-west economic corridor (SWEC) development, and thereby contribute to establishing the SWEC as a major economic corridor in South Asia Subregional Economic Cooperation,” Parkash added, according to the release.

The project will support the rehabilitation of 300 kilometres of urban roads in Dhaka and 30km of drains around the capital and 120km around Khulna.

It will also fund the preparation of an integrated solid waste management plan including the construction of a composting plant for Khulna.

To strengthen capacity, the project will help identify priority investments, prepare or update various plans, and provide training in municipalities and city corporations in integrated urban planning, sustainable service delivery, and operation and maintenance of urban infrastructure.

To reduce startup delays for future projects, support for the preparation of detailed engineering designs for investments involving the latest technologies and smart applications will be provided, ADB said.

This will include integrated real-time data platforms and sensors, advanced building materials, and geotechnical engineering, it said.

The project will also conduct community awareness campaigns covering at least 200,000 people, including at least 100,000 women on reducing, reusing, and recycling solid waste.

ADB’s finance comes in the form of a regular loan of $75 million and a concessional loan for the same amount, according to the release.

The government will provide financing of $73 million toward the $223 million total cost of the project, which is due to be completed by the end of June 2024, the release added.