ADB okays $23m technical help for transport projects
Friday, 5 November 2010
FE Report
The Asian Development Bank (ADB) has approved US$ 23 million worth of technical assistance for helping Bangladesh roll out planned transport projects to accelerate growth and stimulate economic activity across South Asia and beyond.
The loan from ADB's concessional Asian Development Fund has a 32-year term, with an eight-year grace period carrying an interest charge of 1.0 per cent per annum, and 1.5 per cent for the balance of the term, an ADB press statement said.
The assistance will be made available for hastening the passage of road and rail projects earmarked as priorities for the development of regional transport projects under the 'Sub-regional Transport Project Preparatory Facility', it mentioned.
The government of Bangladesh will provide an additional $ 4.59 million for the total project cost of about $ 28 million, it said.
It also said the Roads and Highways Department and Bangladesh Railway will be the executing agencies for the project, which is due for completion in June 2013.
"Projects prepared under this facility will support economic growth and reduce poverty in Bangladesh, as well as strengthen cross-border links to stimulate more intra-regional trade and investment," the ADB press statement said quoting Principal Transport Specialist in ADB's South Asia Department Hiroaki Yamaguchi.
South Asia is one of the fastest growing regions in the world but internal trade remains well below the levels seen in other parts of Asia, with inadequate transport infrastructure a major stumbling block, the statement mentioned.
Bangladesh - which borders India and Myanmar, and is geographically close to Bhutan, Nepal and Kunming in the People's Republic of China - has the potential to become a major transport and trans-shipment hub, Mr Yamaguchi said.
In the past, transport projects in Bangladesh faced start-up delays because of a long lag time between loan approval and the final project design, said the ADB official.
Mr Yamaguchi expressed the hope that the facility will address this and other obstacles to speedy implementation by supporting feasibility studies, design preparation, procurement, social and environmental safeguards, and capacity building for oversight agencies.
"These measures will accelerate the start of physical work following loan approval by at least a year compared with projects processed under conventional procedures," said Mr Yamaguchi.
Road projects targeted for assistance will include cross-border routes identified by the SAARC's Regional Multimodal Transport Study, the press statement said.
The facility will help prepare projects covering around 300 kilometres of road works up for tender in 2012 and up to 1,700 kilometres by the end of 2013, it mentioned, adding the rail component will also focus on priority projects along the sub-regional transport routes.
The Asian Development Bank (ADB) has approved US$ 23 million worth of technical assistance for helping Bangladesh roll out planned transport projects to accelerate growth and stimulate economic activity across South Asia and beyond.
The loan from ADB's concessional Asian Development Fund has a 32-year term, with an eight-year grace period carrying an interest charge of 1.0 per cent per annum, and 1.5 per cent for the balance of the term, an ADB press statement said.
The assistance will be made available for hastening the passage of road and rail projects earmarked as priorities for the development of regional transport projects under the 'Sub-regional Transport Project Preparatory Facility', it mentioned.
The government of Bangladesh will provide an additional $ 4.59 million for the total project cost of about $ 28 million, it said.
It also said the Roads and Highways Department and Bangladesh Railway will be the executing agencies for the project, which is due for completion in June 2013.
"Projects prepared under this facility will support economic growth and reduce poverty in Bangladesh, as well as strengthen cross-border links to stimulate more intra-regional trade and investment," the ADB press statement said quoting Principal Transport Specialist in ADB's South Asia Department Hiroaki Yamaguchi.
South Asia is one of the fastest growing regions in the world but internal trade remains well below the levels seen in other parts of Asia, with inadequate transport infrastructure a major stumbling block, the statement mentioned.
Bangladesh - which borders India and Myanmar, and is geographically close to Bhutan, Nepal and Kunming in the People's Republic of China - has the potential to become a major transport and trans-shipment hub, Mr Yamaguchi said.
In the past, transport projects in Bangladesh faced start-up delays because of a long lag time between loan approval and the final project design, said the ADB official.
Mr Yamaguchi expressed the hope that the facility will address this and other obstacles to speedy implementation by supporting feasibility studies, design preparation, procurement, social and environmental safeguards, and capacity building for oversight agencies.
"These measures will accelerate the start of physical work following loan approval by at least a year compared with projects processed under conventional procedures," said Mr Yamaguchi.
Road projects targeted for assistance will include cross-border routes identified by the SAARC's Regional Multimodal Transport Study, the press statement said.
The facility will help prepare projects covering around 300 kilometres of road works up for tender in 2012 and up to 1,700 kilometres by the end of 2013, it mentioned, adding the rail component will also focus on priority projects along the sub-regional transport routes.