ADB to provide $130m food aid as budget support

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The Asian Development Bank (ADB) would provide a food assistance of $130 million as budget support for the 2008-09 fiscal to meet the government's food requirement under its social safety net programmes, reports UNB.

"A substantial support from the ADB would be available in this area," Finance Adviser Dr Mirza Azizul Islam told the reporters after a meeting with an ADB delegation at Finance Ministry Monday.

ADB Director General for South Asia Department Kunio Senga led the 6-member delegation that arrived in the city Sunday on a 3-day visit to Bangladesh.

The Adviser said an ADB assessment mission in this regard has already completed its work after Bangladesh sought an assistance of $200 million. "The amount could rise to some extent," he said, adding that it depends on the mission's evaluation.

The Adviser said ADB also assured of contributing to a climate change fund, Bangladesh has already initiated through an allocation of Tk 3.0 billion in the proposed budget.

Besides, the proposed fund on governance, which was scheduled to be released by June, would be released by July-end.

He said the ADB also assured Bangladesh of raising the concessional lending from Asian Development Fund (ADF) in the next fiscal year to around $370 million from the existing level of $250-260 million.

"The meeting was productive and fruitful," said the Adviser, expecting that the ADB's cooperation would further increase in the days ahead.

He said they had talks on the progress of regional (Bangladesh, India, Bhutan and Nepal) ICT project at the ADB's funding of around $100 million. He said they stressed the need for a multilateral cooperation agreement in this regard.