ADB to give $5b for road dev, metro-rail

Posted by BankInfo on Tue, Mar 01 2016 12:35 pm

The Asian Development Bank (ADB) is considering funding over US$ 5.0 billion for the country's road and metro-rail development in the next five years. Of the total fund, about $3.0 billion is likely to be spent on three projects in the road sector for increasing regional connectivity, and over $2.0 billion for setting up metro-rail in the city. An ADB mission shared these in its action plan in a meeting with Road Transport and Highways Division officials on Monday. The meeting was held to review the ADB-funded transport sector portfolio performance. Road Division secretary M A N Siddique chaired the meeting, attended by the six-member ADB mission. Hiroshi Yamaguchi, transport and communication director, South Asia Department, led the ADB team. The meeting observed satisfactory progress in all ongoing projects and those in the pipeline. These projects include additional funding for road development under South Asian Sub Regional Economic Cooperation (SASEC) project II and III, and Dhaka-Chittagong expressway. Each of these projects will get at least $1.0 billion ADB fund. Setting up multimodal transport hub near Hazrat Shahjalal International Airport is also on the cards. Sources said ADB has already taken a technical assistance project to fund metro-rail in the city. However, the secretary informed the mission that it would take time to approve the metro-rail project, as its revised strategic transport plan is not yet approved. Under SASEC II, Roads and Highways Department (RHD) has already made progress in the four-lane project from Tangail to Elenga. The development project proposal for the highway from Hatikumrul to Rangpur was also under process of getting approval. ADB is likely to fund the project under SASEC III. The mission informed the officials that a technical assistance loan is in the pipeline for preparing design and support tendering process in 2017, $1.0 billion for the first phase investment during 2018-19, and $1.0 billion for second phase. The mission also guided the government to start land acquisition and procurement for SASEC road II project and ensure high protection readiness for the pipeline projects. The Road Division secretary said the government has requested the mission to include other part of the SASEC road connectivity after Rangpur and Dhaka-Sylhet four-lane project, as good progress has been made in both cases. He said the meeting with the ADB team was a regular meeting. The government will request the development bank to assist those projects, which it will find important for the country.

News:Financial Express/1-Mar-2015
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