ADB to provide $4.5b in 5 years
Friday, 28 October 2011
FE Report
The Asian Development Bank (ADB) will invest US$ 4.50 billion in five years up to 2015 in Bangladesh to upgrade the country's poor infrastructure and cut poverty. It has assured of additional support for developing regional cooperation.
ADB in a statement Thursday said it has prepared a fresh Country Partnership Strategy (CPS) for Bangladesh, in which it earmarks nearly $4.5 billion in lending for different development programmes of the country.
The Manila-based lender provides loans and grants for development works in Bangladesh under its CPSs. The last CPS was framed for the period of 2006-2010.
ADB said the latest CPS has been aligned with the Bangladesh government's sixth five-year development plan priorities and aims to provide fillip to more inclusive and greener growth.
An Economic Relations Division (ERD) official told the FE that after consultation with government ministries and agencies, the ADB has framed the CPS for the next five years.
Under the latest CPS for 2011-2015, the ADB will invest in Bangladesh's six sectors including energy, transport, urban development, education, agriculture and natural resources, and finance.
The Asia-Pacific anti-poverty lender has disbursed US$ 8.70 billion in loans and grants for Bangladesh against its commitment of some $11.9 billion till 2009-10 fiscal.
Under the strategy, ADB will support the government's objective of fostering regionally balanced development by expanding opportunities and increasing access.
"The CPS will seek to assist Bangladesh to face development challenges in a way that is relevant and responsive to the needs of a country that aims to attain middle-income status within a decade," Senior Country Specialist at ADB Dhaka office Mohammad Zahid Hossain said.
The major constraints which the CPS is set to address include infrastructure deficits, shortage of skilled labour, rapid urbanisation, and the effects of climate change and natural disasters, the ADB said.
Under its $4.5 billion investment plan during 2011-15, the lender will extend support to enhance power supply, improve energy efficiency, upgrade a better road and railway infrastructure in order to bolster growth, and ensure environment-friendly modes of transport.
In the urban sector, ADB will come up with support in ensuring safe water supply and sanitation, easing urban congestion and overcrowding, developing satellite towns and promoting sustainable urban transport.