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Asian Development Bank (ADB) approves two loans |
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November 30, 2000
Dhaka-- (UNB) - Asian Development Bank (ADB) yesterday approved two loans amounting to US$ 94 million for improving nationwide roads in Bangladesh to help accelerate economic activity. Primary and regional roads, especially in areas where the incidence of poverty is high, will be improved under the project with a total cost estimated at US$ 150.2 million. The project will also upgrade and expand the Southeast Road Corridor, the country’s most important highway that links Dhaka to the main port city of Chittagong in southeastern Bangladesh. An ADB announcement here says the lending comprises US$ 72 million credits from its concessional special fund resources and US$ 22 million which comes from its ordinary capital resources. The balance of the cost will be borne by the government. The concessional loan will be repayable over 32 years, including a grace period of 8 years. The interest rate will be one percent per annum during the grace period and 1.5 percent per annum thereafter. The other chunk of money will be payable over 25 years, including a grace period of five years, with interest at the ADB’s pool-based variable lending rate for US dollar loans. “The highway is essential for economic growth, especially for export industries, and will serve a large proportion of the country’s population,” said the release of the Asian financing institution. It said the project would finance periodic maintenance of up to 400 kilometres of the road network administered by the Roads and Highways Department. The project will strengthen the system of selecting financing and executing road maintenance and encourage private sector participation in road infrastructure to improve economic efficiency and reduce public financing for the sector. The Chittagong Port Access Road, the country’s first access-controlled toll road, will be operated and maintained by the private sector. Roads and Highways Department will implement the project, scheduled to complete by June 30, 2004. |