Negotiations on $150m ADB loan begin today
Thursday, 6 September 2007
FE Report
The government will start negotiating with the Asian Development Bank (ADB) today (Thursday) for a US$150 million loan.
The ADB credit will be utilised to improve governance and transparency in some public entities.
The two sides will hold talks on Thursday and Friday in Dhaka to complete the negotiations on the proposed budgetary support credit, sources in the Economic Relations Division (ERD) said.
The sources said the ADB money will be used for strengthening the Anti-Corruption Commission (ACC), cabinet division, establishment ministry and judicial system, and undertaking reforms in the Public Service Commission (PSC) and Bangladesh Shipping Corpo-ration.
An ERD official said the government is expected to receive the first tranche of the $150 million credit by December this year.
Once an agreement is signed, the multilateral lender is likely to disburse the first tranche worth $50 million, second tranche $55 million and third tranche $45 million, he said.
The official expected that the proposal of the credit would be placed in the Bank's Board meeting in Manila on September 28 for approval.
"After approval of the proposal by the ADB Board, the government will sign a loan deal by October this year," he said.
The ERD official said this will be the first such big ADB assistance offered for improvement of governance in Bangladesh.
The ERD official informed that following some reforms undertaken by the present caretaker government, the multilateral donor gave positive indication for offering the $150 million budgetary support credit.
The official, however, said that the Manila-based donor was to provide only $40 million as 'policy loan' for ensuring good governance in the public administration.
"But after the present caretaker government took initiatives in streamlining the public system, the ADB has revised its plan and wanted to support in a bigger way," he said
Meanwhile, an appraisal mission from the ADB headquarters had talks with the concerned government entities on July 12-20 to examine the necessity of strengthening governance in different government sectors.
During the visit, the ADB team discussed with different government organisations including the ACC, cabinet division, High Court, Chittagong Port Authority (CPA), shipping ministry, local government division in order to take their views about establishing transparency and good governance in the government system.
Besides, an ADB fact-finding mission also visited Dhaka in April last to assess the requirement of fund for improving the governance system in Bangladesh.
The government will start negotiating with the Asian Development Bank (ADB) today (Thursday) for a US$150 million loan.
The ADB credit will be utilised to improve governance and transparency in some public entities.
The two sides will hold talks on Thursday and Friday in Dhaka to complete the negotiations on the proposed budgetary support credit, sources in the Economic Relations Division (ERD) said.
The sources said the ADB money will be used for strengthening the Anti-Corruption Commission (ACC), cabinet division, establishment ministry and judicial system, and undertaking reforms in the Public Service Commission (PSC) and Bangladesh Shipping Corpo-ration.
An ERD official said the government is expected to receive the first tranche of the $150 million credit by December this year.
Once an agreement is signed, the multilateral lender is likely to disburse the first tranche worth $50 million, second tranche $55 million and third tranche $45 million, he said.
The official expected that the proposal of the credit would be placed in the Bank's Board meeting in Manila on September 28 for approval.
"After approval of the proposal by the ADB Board, the government will sign a loan deal by October this year," he said.
The ERD official said this will be the first such big ADB assistance offered for improvement of governance in Bangladesh.
The ERD official informed that following some reforms undertaken by the present caretaker government, the multilateral donor gave positive indication for offering the $150 million budgetary support credit.
The official, however, said that the Manila-based donor was to provide only $40 million as 'policy loan' for ensuring good governance in the public administration.
"But after the present caretaker government took initiatives in streamlining the public system, the ADB has revised its plan and wanted to support in a bigger way," he said
Meanwhile, an appraisal mission from the ADB headquarters had talks with the concerned government entities on July 12-20 to examine the necessity of strengthening governance in different government sectors.
During the visit, the ADB team discussed with different government organisations including the ACC, cabinet division, High Court, Chittagong Port Authority (CPA), shipping ministry, local government division in order to take their views about establishing transparency and good governance in the government system.
Besides, an ADB fact-finding mission also visited Dhaka in April last to assess the requirement of fund for improving the governance system in Bangladesh.