Govt, ADB sign loan deals worth $628.29m

FE Team | Published: December 27, 2022 00:02:37

The Asian Development Bank (ADB) and the government on Monday signed loan agreements worth $628.29 million for the implementation of development, urban transport and climate resilience projects, reports BSS.
Sharifa Khan, secretary, Economic Relations Division (ERD), and Jiangbo Ning, deputy country director and officer-in-charge of Bangladesh resident mission, ADB, signed the agreements on behalf of their respective organisations, said a press release.
The release said ADB will provide $278.29 million in loan for 'Third Public-Private Infrastructure Development Facility - Tranche 2, $100 million for 'Greater Dhaka Sustainable Urban Transport Project (BRT- Gazipur), $246 million for 'Coastal Towns Climate Resilience Project' and a grant of $4 million for the 'Coastal Towns Climate Resilience Project'.
Alamgir Morshed, executive director and CEO of Infrastructure Development Company Limited (IDCOL); Quazi Muhammad Ferdous, chief engineer of Bangladesh Bridges Authority, nominated representatives of designated municipalities and Jiangbo Ning, deputy country director and officer-in-charge of Bangladesh resident mission, ADB, signed the respective project agreements.
1. Third Public-Private Infrastructure Development Facility (Tranche 2):
The project will be implemented by Infrastructure Development Company Limited (IDCOL) to invest in infrastructure projects developed under the Public-Private Partnership (PPP) model. The project is estimated to be completed in June 2027.
ADB loan for this project has two components: $262.29 million Ordinary Operations (regular) and $16 million Ordinary Operations (concessional) that will support investment in energy efficiency and renewable energy solutions. Both loans have repayment period of 25 years including a grace period of five years.
2. Greater Dhaka Sustainable Urban Transport Project (BRT- Gazipur):
The Project will be executed by Road Transport and Highways Division and implemented by Roads and Highways Department (RHD), Bangladesh Bridges Authority (BBA) and Local Government Engineering Department (LGED).
The objective of the project is to improve the quality of urban life in Gazipur, Tongi establishing efficient, sustainable, environment friendly, affordable and safe urban transport system through the construction of 20.50 km-long Bus Rapid System from Gazipur to Airport.
ADB will provide additional $100 million Ordinary Operations (regular) loan which is repayable in 25 years with a grace period of 5 years.
3. Coastal Towns Climate Resilience Project:
The project will be executed by Local Government Engineering Department under Local Government Division. The objective of the project is to strengthen climate and disaster resilience of the selected coastal towns at risk and improve the quality of life of women and poor in the locality.
Fifteen municipalities of six districts of Barisal division, five municipalities of three districts of Khulna division and two municipalities of Shariatpur district of Dhaka division are covered by this project.
The estimated completion date of the project is 30 June 2029. ADB's $250 million support for this project includes $150 million Ordinary Operations (concessional) loan, $96 million Ordinary Operations (regular) loan and $4 million grant. The loan is repayable in 25 years with a grace period of 5 years.