Asian Development Bank will give Bangladesh $300 million in loans for upgrading an international road corridor project.
Economic Relations Division of the finance ministry and Manila-based ADB signed an agreement in this regard at a programme held at the ERD conference room at Agargaon in Dhaka on Wednesday. ERD secretary Kazi Shofiqul Azam and ADB country director Manmohan Parkash signed the loan agreement at the programme.
The fund will be spent to upgrade the Dhaka-Northwest international trade corridor improving the 190-kilometre section of the corridor stretching from Elenga (Tangail) through Hatikurul (Sirajganj) to Rangpur.
‘This project will help boost trade along the second busiest road artery in the country, and further strengthen regional connectivity,’ Manmohan said.
This will also help bring down transport costs, make the sector more competitive, and make transportation between Dhaka and north-western Bangladesh more efficient, he added.
The assistance forms the first tranche of $1.2 billion multi-tranche ADB loans for the Second SASEC Northwest Corridor Road Project.
The first SASEC Northwest Corridor Road Project was approved in 2012 to improve 70-kilometre Joydeypur-Elenga section of the road.
Transport infrastructure is the centrepiece of the ADB-supported South Asia Sub-regional Economic Cooperation (SASEC) programme.
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