The Asian Development Bank (ADB) in its strategic country plan for Bangladesh pledged to provide U$$ 3.715 billion fund for 2011-14 to develop the country's weak infrastructure, power and energy sector and the capital market.

The multilateral development agency planned to provide around $1.40 billion to set up power plants with 9500 megawatt capacity in the period.

Around 33 per cent of the loan will be provided for power and energy sector development. Transport and information technology development sector will get $745 million or 26 per cent of the loan package.

ADB planned to provide the loan package in its strategic country plan for Bangladesh which will be placed to the Economic Relations Division (ERD) today (Wednesday).

The donor agency has given the highest priorities on development of the power sector during 2012-14.

A mission on 'Bangladesh country partnership strategy' arrived in the country last Sunday to offer the loan package. The mission will sit with all of the government high-ups to discuss the strategic plan.

ADB has prepared the strategy paper titled 'country business plan' by projecting GDP (gross domestic product) growth of 6.0 per cent in the current year.

The strategic paper said ADB will provide US$ 3715 million or Tk 260 billion to Bangladesh in the 2011-14 period.

It will provide US$ 900 million in 2011 for five major sectors. ADB has pledged to provide $2815 million in 2012-14 period for 23 projects.

For agriculture and natural resources development, it pledged to allocate $140 million or 5.0 per cent of the total loan package.

Education will get $390 million or 14 per cent of the total loan while $80 million will be provided for the financial sector development.

Water supply and infrastructure development of urban areas will get $535 million loan from the package.

The development partner focused on four main sectors to expedite development that include power, infrastructure for better communication, urbanisation and education.

ADB said the Bangladesh will have to include climate change in all of its economic activities. It has set the priorities for the loan package.

The ADB plan said it would provide $900 million for agriculture, primary education, power, railway and water supply projects in the current fiscal.

Education will get $320 million, the highest amount, in loan this year, while power is the next priority with $ 300 million.

For 2012, the development partner pledged to provide $910 million for capital market development, climate change, education, power sector, Public-Private Partnership (PPP), sustainable primary health services for urban area, development of transportation system in the greater Dhaka and transport corridors.

Power sector will get the highest priority in 2012 with $250 million loan out of $910 million.

Transport corridor development projects will get $175 million in 2012, while $80 million will be allocated for development of stock market in 2012.

PPP will get $150 million, while development of the city's transportation system will get $145 milion in 2012.

For 2013, the ADB allocated $965 million for regional power generation and transmission, secondary education development, Khilkhet water supply projects, coastal urbanisation infrastructure development projects, sub-continental railway projects.

The ADB plan has allocated $910 million for 2014 giving highest priority to power development, PPP, Chittagong port development, railway, river dredging, urbanisation.

In the strategic plan, the ADB has focused on the country's manpower strength and vibrant private sector. It also appreciated impressive growth of textile and agriculture.

The plan said the government is moving in the right direction to achieve Millennium Development Goal (MDG) as it has successfully reduced child and maternal mortality rate and improved pure water supply.

Source: Financial Express/Bangladesh/May-25-2011