Bangladesh will receive a US$1.78 billion worth of funding from the Asian Development Bank (ADB) to improve mobility, road safety and regional trade along the Dhaka-Sylhet trade corridor in Bangladesh.
The ADB gave the approval to the said amount of multi-tranche financing facility (MFF) on Friday (August 27), says a press release, issued by the bank in Manila.
The Dhaka-Sylhet corridor project aims to support a new trade route that connects Chattogram port with India's northeastern states through the three land ports of Akhaura, Sheola and Tamabil, and from there to Bhutan and Myanmar, it said.
The corridor is also the centerpiece of the Bangladesh government's planned Northeast Bangladesh Economic Corridor, which aims to promote key industries in the area, such as energy generation and production of construction materials, and to better integrate them with the rest of the economy in the country.
"Bangladesh's export-driven economic growth has shown its unique potential and opportunity of becoming a regional transport and trade hub. To sustain this growth, the country's transport infrastructure needs to be improved," it said, quoting ADB Transport Specialist for South Asia Satomi Sakaguchi.
"The project road is the main part of Road Corridor No. 5 under the South Asia Sub-regional Economic Cooperation (SASEC) programme. Its improvement will reduce logistic costs, increase competitiveness and help expand regional trade with neighboring South Asian countries as well as provide safe accessibility to the community members," said Satomi Sakaguchi.
"By doing so, the investment project will contribute to the government's goal of achieving inclusive growth and sustainable development," Satomi Sakaguchi was also quoted as saying.
The SASEC Dhaka-Sylhet Corridor Road Investment Project financing will be made available in four tranches, the ADB press release said.
Of them, the $400 million first tranche of the MFF will help finance the initial works of the major contracts for the widening of about 210 kilometers (km) of National Highway No. 2 along the Dhaka-Sylhet corridor from a two-lane to a four-lane road with slow-moving vehicular traffic lanes, states the press release.
The project will include 60 km of footpath, 26 footbridges, and 13 overpasses, it stated, saying its design will have features responsive to the needs of the elderly, women, children, and the differently abled, as well as disaster and climate risks.
The government of Bangladesh will fund $911 million of the total project cost worth $2.69 billion, it mentioned.
Apart from the MFF, 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 Poverty Reduction, 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, it said.
Transport and trade facilitation are among the priorities of the 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, mentioned to the release.
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