Bangladesh getting $30m loan, $41m grant from ADB

The Asian Development Bank (ADB) will loan $30 million and provide $41.40 million in grants to Bangladesh for implementing three development projects.

The Economic Relations Division (ERD) and ADB signed both the loan and grant agreements in this regard on Wednesday, read a press release. ERD Secretary Fatima Yasmin and ADB Country Director at Bangladesh Resident Mission Edimon Ginting represented their respective sides.

The loan will be used for the implementation “Emergency Assistance Project: Cox’s Bazar-Teknaf Road (N-1) Development Project (RHD Part),” while the grants will be provided for implementing projects titled “Bangladesh: Emergency Assistance Project (LGED Part)” and "Emergency Assistance Project for water, Supply and Sanitation in Ukhia and Teknaf Upazilas of Cox's Bazar District (DPHE Part).”

The Local Government Division has taken the Bangladesh: Emergency Assistance Project (LGED Part) at an estimated cost of Tk 321 crore, which will be implemented by the Local Government Engineering Department (LGED) from July 2018 to December 2024.

The ADB will provide a grant of $ 10.91 million for implementing this project.

The Local Government Division has also taken the Emergency Assistance Project for water, Supply and Sanitation in Ukhia and Teknaf Upazilas of Cox's Bazar District (DPHE Part) at an estimated cost of Tk 892 crore.

The Department of Public Health Engineering is set to implement this project by June 2025, and ADB will provide an additional grant of $30.49 million for it.

The purpose of the two projects is to provide food, water, healthcare and temporary accommodation to the forcibly displaced Myanmar nationals (FDMN) who have taken refuge in Bangladesh, and also to develop necessary infrastructure for the delivery of various humanitarian assistance by national and international organisations.

Meanwhile, the Road Transport and Highways Division has taken the Emergency Assistance Project: Cox’s Bazar-Teknaf Road (N-1) Development Project Emergency Assistance Project at an estimated cost of Tk 563.99.

The Department of Roads and Highways is implementing the project by June 2023. The ADB will provide a loan of $30 million for implementing this project.

This project will establish a safe and eco-friendly 80.76 km road link between Cox’s Bazar and Teknaf in order to facilitate communication, and the movement of commodities and goods for the purpose of socio-economic development.

The rate of interest for the OCR-COL loan is 1 per cent with no other charges. The loan repayment period is 40 years with a grace period of 10 years.

The ADB is one of the largest multilateral Development Partners of Bangladesh, extending assistance for the socio-economic development of the country since it became a member of ADB in 1973.

ADB's total loan to Bangladesh till now is $27.023 billion and total grant is $0.532 billion.

The agency provides development assistance mainly in Power, Energy, Local Government, Transport, Education, Agriculture, Health, Water Resources, Good Governance and Financial Sectors of Bangladesh.