$125m ADB loan for improving services in 30 municipalities

FE Report
The Asian Development Bank (ADB) will provide US$ 125 million loan to Bangladesh for improving the services of 30 pourashavas (municipalities) in the country.
The ADB approved the loan Friday to improve services and governance, making them more livable and attractive, and helping to ease population pressures on major cities, said a press release of the ADB.
Besides, it will also make the local government body more livable and attractive, and help ease population pressure on major cities, it added.
 "The two largest cities of Dhaka and Chittagong now account for nearly half of Bangladesh's urban population and to ease the effects of overcrowding, it is essential to develop livable district towns with quality infrastructure and that are well-managed," said Norio Saito, Principal Urban Development Specialist with ADB's South Asia Department.
 "This assistance will support that goal and help Bangladesh create model towns for possible future replication," he said.
Many pourashavas suffer from weak oversight and are struggling to provide citizens with key services including drinking water, sanitation, solid waste management and drainage systems.
In response, the ADB has already been providing support for improved services under an urban governance action programme.
The new project, which is part of the programme, will provide assistance to 30 pourahsavas with a total population of 2.2 million, including 20 district headquarters towns. These administrative, trade and economic centres, and transportation and distribution hubs, are crucial for more balanced development in Bangladesh.
The loan fund will be used to upgrade infrastructure and services, including roads, drainage and sanitation systems, piped water supplies, and solid waste collection and disposal.
The fund will also be used to strengthen the ability of municipalities to carry out urban planning, financial management, and service delivery.
Some of the expected benefits will include reduced travel time and cost savings from better roads, health improvements from piped water and solid waste collection, and more citizen participation including by women and poor and marginalised groups in governance and provision of basic services.