Home ›› 05 Oct 2021 ›› Front
The Asian Development Bank (ADB) will provide Bangladesh $250 million in loan to support economic recovery from the Covid-19 pandemic.
Under another package, the regional lender will give $400 million in loan for constructing the Dhaka-Sylhet Highway to improve mobility, road safety, and regional trade in the proposed north-east economic corridor in the country.
Economic Relations Division (ERD) Secretary Fatima Yasmin and ADB Country Director Manmohan Parkash signed two separate agreements on behalf of Bangladesh and ADB, respectively, on Monday.
The $250 million fund will be given under the first subprogram of the programmatic $500 million Sustainable Economic Recovery Program.
“Bangladesh has managed the ongoing Covid-19 pandemic well through the stimulus and incentive packages and expanded social protection programmes under a pragmatic policy to support lives and livelihoods,” said Parkash.
Rapid implementation of critical reforms for improving public investment and expenditure efficiency, domestic resource mobilisation, diversifying the economy, boosting competitiveness, and promoting small enterprises for local-level job creation are critical reforms that need to be implemented expeditiously, he said.
As per the agreement, the Sustainable Economic Recovery Program will facilitate rapid and sustainable recovery from the pandemic, generate employment, and expand economic activities for micro-entrepreneurs and small businesses.
The programme will widen access to finance for women entrepreneurs, particularly those running CMSMEs, by introducing or modifying refinancing programmes and credit guarantee schemes with an earmarked portion for women entrepreneurs.
The programme will also encourage more women-led start-ups by earmarking 10 per cent of new start-up financing for them.
Meanwhile, the $400 million loan is aimed at improving mobility, road safety, and regional trade in the proposed north-east economic corridor in the country.
According to a press release, the assistance is the first tranche of a $1.78 billion multi-tranche financing facility approved by ADB on August 27 for the SASEC Dhaka–Sylhet Corridor Road Investment Project.
The Dhaka–Sylhet corridor, once completed, will support a new trade route that connects Chattogram port with India’s north-eastern states through the three land ports of Akhaura, Sheola, and Tamabil, and onwards to Bhutan and Myanmar.
The project is the main part of Road Corridor No. 5 under the South Asia Sub-regional Economic Cooperation (SASEC) programme.
Transport and trade facilitation are among the priorities of SASEC members, which since 2001, have invested more than $14.3 billion in projects in the region, including 43 transport projects worth $11.4 billion.
The SASEC Dhaka–Sylhet Corridor Road Investment Project will be delivered in four tranches.
The $400 million first tranche of the facility will help finance the initial works of the major contracts for the widening of about 210 kilometres (km) along the Dhaka–Sylhet corridor
from a two-lane to a four-lane road, and add lanes for slow-moving vehicular traffic.
It will include 60km of footpaths, 26 footbridges, and 13 overpasses. Its design will have features responsive to the needs of the elderly, women, children, and the differently-abled and disaster and climate risks.
The government will fund $911 million of the total project cost of $2.69 billion. ADB will also provide a $1 million technical assistance grant from its Technical Assistance Special Fund and an additional $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan, to support capacity building of the Roads and Highways Department on road safety and maintenance, climate change, and gender equality and social inclusion.
ADB Country Director Parkash said that the Dhaka-Sylhet Road would open up opportunities for the entire north-east region of Bangladesh and act as a strategic corridor for subregional, regional and international trade.
“The region is well endowed, and the corridor, which is a part of the Asian Highway network, will connect upcoming economic zones in the Sylhet region, catalyse foreign direct investment, reduce transportation and trading costs, increase competitiveness, create employment, and stimulate economic development,” he said.
He also mentioned that it would connect ports and industrial hubs like Chattogram and Matarbari, and integrate the region with the rest of the economy.
