ADB attaches condition to its $150m credit for BR
Saturday, 20 November 2010
The Asian Development Bank (ADB) has assured the government of bankrolling the ailing Bangladesh Railway (BR) to upgrade its services that will help facilitate regional connectivity, officials have said.
Finance ministry officials said the ADB has recently said that it would provide US$ 150 million funds to the government if the state-owned rail service provider could frame the 'lines of business' to improve its services.
"At a recent talks with ADB we have been assured of receiving $150 million in credit for the state-owned railway. We are hopeful of getting the money next year," a senior economic relations division (ERD) official told the FE.
As the age-old BR has been incurring millions of dollars' losses every year due to lack of adequate investments and operational irregularities, the government and ADB have agreed to revamp the limping railway.
Besides, Bangladesh has decided to upgrade its railway communication to set up the regional connectivity with its neighbouring countries to boost trade within this region.
Bangladesh is one of the delta countries, surrounded by roads, railways and waterways communications. But most of the people use roads due to poor operation of the railway and waterways.
The government has already framed a development plan for the BR to upgrade its services and make it a profitable agency.
The World Bank, ADB and the Japan International Cooperation Agency (JICA) have already agreed to provide financial back-up to the government to overhaul the state-owned railway.
But the donors have started going slow, as the BR is failing to conduct the proposed reforms on time.
"As the present government is committed to upgrading the railway communication, ADB has come forward. It recommended that the government finalise the 'lines of business' for the state-owned communications provider," the ERD official said.
He said if the BR finalises the 'lines of business', the proposed $150 million credit would be given the next year which would be utilised for upgrading the impoverished railway.
BR would utilise the money to renovate some railway tracks and their signalling systems, procure modern locomotives, develop railway workshops and construct bridges and other infrastructures, the official said.
Finance ministry officials said the ADB has recently said that it would provide US$ 150 million funds to the government if the state-owned rail service provider could frame the 'lines of business' to improve its services.
"At a recent talks with ADB we have been assured of receiving $150 million in credit for the state-owned railway. We are hopeful of getting the money next year," a senior economic relations division (ERD) official told the FE.
As the age-old BR has been incurring millions of dollars' losses every year due to lack of adequate investments and operational irregularities, the government and ADB have agreed to revamp the limping railway.
Besides, Bangladesh has decided to upgrade its railway communication to set up the regional connectivity with its neighbouring countries to boost trade within this region.
Bangladesh is one of the delta countries, surrounded by roads, railways and waterways communications. But most of the people use roads due to poor operation of the railway and waterways.
The government has already framed a development plan for the BR to upgrade its services and make it a profitable agency.
The World Bank, ADB and the Japan International Cooperation Agency (JICA) have already agreed to provide financial back-up to the government to overhaul the state-owned railway.
But the donors have started going slow, as the BR is failing to conduct the proposed reforms on time.
"As the present government is committed to upgrading the railway communication, ADB has come forward. It recommended that the government finalise the 'lines of business' for the state-owned communications provider," the ERD official said.
He said if the BR finalises the 'lines of business', the proposed $150 million credit would be given the next year which would be utilised for upgrading the impoverished railway.
BR would utilise the money to renovate some railway tracks and their signalling systems, procure modern locomotives, develop railway workshops and construct bridges and other infrastructures, the official said.