ADB approves $200 mn loan for infrastructure in Bangladesh

Dhaka [Bangladesh], August 9 (ANI): The Asian Development Bank (ADB) will offer the Government of Bangladesh a loan of USD 200 million to strengthen urban infrastructure, service delivery and governance in municipalities.

"The country's pourashavas still need significant investment to not only improve service delivery and the urban environment, but also to strengthen resilience to climate change," the Daily Star quoted Alexandra Vogl. Urban Development Specialist of ADB, as saying.

"This additional ADB financing for the well performing Third Urban Governance and Infrastructure (Sector) Project builds on the work of two previous ADB projects, expanding work in the pourashavas where we are already working and into five new ones," the official added.

According to Daily Star, despite Bangladesh's rapid economic growth averaging at 6.6 percent gross domestic product growth in 2014-2016, the government facing challenges to achieve sustainable and inclusive growth in the face of rapid urbanisation.

As per the report, "With particular emphasis on promoting climate resilience and gender equity, the additional ADB financing approved this week will enable the continued funding of priority infrastructure and governance improvements in 35 municipalities with a total population of 3.1million. The project will also allocate funds based on governance performance to the top-performing remaining municipalities in the country."

Adding, "Specifically, the additional financing for the third project, bringing total ADB financing up to USD325 million, will contribute to build or improve 600km of roads and 300km of drains, and install or upgrade 180km of pipes for water supply with 60,000 metered household connections, according to the press release."

Bangladesh is facing major issues related to climate change, as the country faces rising temperatures; more frequent and intense rainfalls, storms, and flooding; and danger to coasts from rising sea levels. These issues are critical in municipalities because of inadequate governance, lack of community participation, and capacity constraints.

According to the Daily Star, the government will also start slum improvement project. Sludge management facilities will be built in 14 project towns and solid waste sites built or improved in 20.

The implementation period for the project is August 2017 to June 2021. (ANI)

This story has not been edited. It has been published as provided by ANI