ADB to lend $230m for 5 dev projects

The Asian Development Bank (ADB) will provide $230 million for five development projects in Bangladesh.

“The projects include railway development, renovation of roads and tube wells damaged by floods, and ensuring safe drinking water,” Planning Minister MA Mannan told reporters after a meeting with ADB’s Bangladesh Country Director Edimon Ginting held at the ministry on Thursday.

He said the projects are being processed but their approval is getting delayed. The Planning Commission will approve the projects and the Economic Relations Division (ERD) will then sign the loan agreement with ADB, the minister said.

Edimon said, “We are always supporting Bangladesh. However, the country should increase its revenue income, and there should be reforms to this end.”

In particular, ADB will assist Bangladesh in reforming the income tax ordinance, he said. “Once the approval of the five projects is expedited, we can start the process of signing the loan agreement,” the ADB official added.

Speaking about reforms, Mannan said it is an ongoing process.

“Sometimes reforms are implemented based on the advice of friends. The government is prioritising the reformation of the National Board of Revenue as it is playing a major role in our income.”

Referring to budget support, Edimon said, “We are working on this. Domestic activity continues, and I hope it will be finished soon.”

Mannan hoped Bangladesh would soon receive ADB’s budget support.

Earlier, ADB assured to provide $500 million in budget support for economic recovery and handling climate change impacts. The interest rate of budget support has been fixed at 0.5 per cent.

Bangladesh will get 15 years to repay the loan, and there will be a grace period of three years.