ADB to provide $2.5b aid in 4 yrs

The Asian Development Bank (ADB) would provide US$2.5 billion assistance to Bangladesh in four years until 2017 to develop infrastructure and cut poverty, officials said Saturday.
Economic Relations Division (ERD) officials said the bank has recently finalised its Country Operation Business Plan (COBP) for Bangladesh for 2015-2017 period and revised the current year 2014 lending programme.
Besides, the ADB has also kept another $1.53 billion as stand-by fund for Bangladesh's necessary projects that are not included in the COBP, they said.
The ADB's senior External Affairs Officer Govinda Bar said they have finalised the COBP of Bangladesh recently.
After consultation with different ministries of the government, the ADB decided to provide nearly $2.5 billion assistance in four years till 2017.
Joint Secretary of the ERD Saifuddin Ahmed said they had recently completed discussions with the ADB for getting the assured loan.
"The bank has finalised its lending programme in a week-long discussion with different government agencies in May. The bank will help develop different sectors in four years," he told the FE.
The ADB is Bangladesh's second largest multilateral donors after the World Bank playing vital role in developing the country's rickety infrastructure and cutting poverty.
Under its lending programme for the 2015-2017 period, Bangladesh's railway, power, education and public financial market sector have got priority.
Another ERD official said the Bank has revised its lending programme for the current year 2014 and finalised the lending programme for the next three years.
According to the COBP, the ADB would provide $505 million in loan for a single project out of its planned $905 million in the current calendar year 2014.
The $505 million loan alone will be provided to set up a duel-gauge railway track between Akhaura-Laksham on the Dhaka-Chittagong railway line this year, the ERD official said.
In 2015, the ADB would provide a total of $1.07 billion loans including $300 million for the proposed 700-megawatt coal-fired power plant at Maheshkhali and another $250 million for the capital market development programme.
In 2016, the bank will lend $687 million funds including $217 million for the Dohazari-Cox's Bazar railway line.
In the final year 2017 of the COBP, the ADB will give $689 million including $225 million for an education sector development project.
The ADB gives soft loan to Bangladesh charging a service charge between 1.0 and 2.0 per cent annually.  
Bangladesh has been a member of the ADB since 1973. Since then, the bank  provided Bangladesh with around $15.4 billion in loans and grants, including $872 million in 2013 alone.
The ADB's priority areas for support in Bangladesh include energy, transport, urban infrastructure and water supply and sanitation, education, agriculture and natural resources, and finance sectors.
As of December 31, 2013, the ADB's portfolio for Bangladesh included 58 loans with $5.19 billion in total value.