Govt signs deals with dev partners

FE Team | Published: December 17, 2018 21:39:03

The government on Monday signed two agreements worth 315 million euro and a memorandum of understanding (MoU) worth 109.6 million pounds with the European Investment Bank (EIB), European Union (EU) and the Department for International Development (DFID), UK to support the country's railway sector, extreme poor and developing human capital, reports BSS.
The agreements and MoU were signed by Economic Division Relations (ERD) Secretary Monwar Ahmed on behalf of the government and Angela Marcarino Paris and Roger Stuart, head of division of EIB on behalf of EIB, country representative of DFID Bangladesh Jim McAlpine on behalf of DFID, and Pierre Amilhat, Director, DEVCO F-Asia, central Asia, middle east/gulf and pacific on behalf of EU respectively, said an ERD press release.
Under the first agreement, the EIB will provide 110 million euro for the 'Bangladesh Rail Fleet Modernization Project'. Out of the total project cost of 327 million euro, the ADB will provide a loan up to 166 million as co-financier while the rest of the cost will be borne by the government of Bangladesh.
The maturity of the loan is 20 years having a grace period of four years.
The main objectives of this project is to procure 200 BG passenger carriages with a view to replace the overaged stocks, enhance availability of rolling stocks and meet up increased demands of passenger trains to facilitate transportation of people by railway with extension of services to the remote areas of the country.
The MoU for 109.6 million pound grants was signed between the ERD and DFID for the 'Pathways to Prosperity for Extremely Poor People (PPEPP)' project. DFID will make available 80 million pounds while the European Union will co-fund 29.6 million pounds channeled through DFID.
The project will contribute to the eradication of extreme poverty in Bangladesh by supporting the Palli Karma Sahayak Foundation (PKSF). It will also support national policies and plans to provide effective services and resources to extremely poor and vulnerable households.
The financing agreement for 205 million euro was signed between the ERD and the EU for the 'Human Capital Development Programme for Bangladesh 2021 (HCDP 21)'.
The overall objective of the programme is to support the government of Bangladesh in implementation of its development policies at a better educated, trained and qualified human capital by 2021 as laid down in its national strategic development plans.