Home ›› 27 Dec 2022 ›› Front
The Asian Development Bank (ADB) will provide Bangladesh with $624.29 million loan for implementing three development projects in addition to $4 million in grant.
The multilateral lender will fund $278.29 million to Third Public-Private Infrastructure Development Facility-Tranche 2 while additional $100 million to Greater Dhaka Sustainable Urban Transport project (BRT-Gazipur) and $246 million to Coastal Towns Climate Resilience project.
The Economic Relations Division (ERD) and ADB on Monday signed the loan agreements at the ERD office in the capital.
ERD Secretary Sharifa Khan and Deputy Country Director & Officer-in-Charge, Bangladesh Resident Mission of ADB Jiangbo Ning inked the loan deals on behalf of their respective sides.
Third Public-Private Infrastructure Development Facility (Tranche 2)
Infrastructure Development Company Limited (IDCOL) will implement the project under the Public-Private Partnership (PPP) initiative. The project is scheduled to be completed by June 2027.
It has two components--$262.29 million ordinary operations (regular) and $16 million ordinary operations (concessional)--which will support investment in energy efficiency and renewable energy solutions. Both loans will have a repayment period of 25 years with 5-year grace period.
Greater Dhaka Sustainable Urban Transport project (BRT-Gazipur)
The project will be executed by Road Transport and Highways Division, Roads and Highways Department (RHD), Bangladesh Bridge Authority (BBA) and Local Government Engineering Department (LGED).
The objective of the project is to improve the living standard of urban people in Gazipur-Tongi area with establishing efficient, sustainable, environment-friendly, affordable and safe urban transport system through the construction of 20.50-km Bus Rapid Transit line from Gazipur to Airport. ADB will provide additional $100 million ordinary operations (regular) loan which is repayable in 25 years with a grace period of five years.
Coastal Towns Climate Resilience project
The project will be executed by Local Government Engineering Department under Local Government Division. The objective of the project is to strengthen climate and disaster resilience of the selected coastal towns at risk and improve the living standard of women and poor in the locality.
Fifteen municipalities in six districts under Barishal division, five in three districts under Khulna division and two in Shariatpur district under Dhaka division will be covered by this project.
The completion date of the project is June 30, 2029. ADB’s $250 million support for this project includes $150 million ordinary operations (concessional) loan and $96 million ordinary operations (regular) loan which are repayable in 25 years with a grace period of five years apart from $4 million in grant.
The flat interest rate on OCR (concessional) loan is 2 per cent while OCR (regular) loan interest rate is SOFR (Secured Overnight Financing Rate) 0.50 per cent, including maturity premium at the rate of 0.10 per cent and commitment charge at the rate of 0.15 per cent on undisbursed amount.
Since 1973, ADB has become one of the largest multilateral development partners of Bangladesh, extending development assistance to the country. ADB’s total loan to Bangladesh till now is more than $27.844 billion and total grant is about $0.541 billion.
