Asian Development Bank (ADB) is funding USD $628.29 million to implement 'Greater Dhaka Sustainable Urban Transport (BRT- Gazipur), 'Coastal Towns Climate Resilience and Third Public-Private Infrastructure Development Facility.
A loan agreement was signed between the Economic Relations Division (ERD) and ADB in this regard in Dhaka on Monday.
ERD secretary Sharifa Khan and Jiangbo Ning, Deputy Country Director and Officer-In-Charge, of Bangladesh Resident Mission, signed the deed documents on behalf of their respective side.
Greater Dhaka Sustainable Urban Transport Project (BRT- Gazipur) will be executed by the Road Transport and Highways Division and implemented by the Roads and Highways Department (RHD), Bangladesh Bridge Authority (BBA), and Local Government Engineering Department (LGED).
The objective of the project is to improve the quality of urban life in the Gazipur-Tongi area, establishing an efficient, sustainable, environment-friendly, affordable, and safe urban transport system through the construction of a 20.50 km long Bus Rapid System from Gazipur to the Airport.
ADB will provide an additional $100 million ordinary operations (Regular) loan which is repayable in 25 years with a grace period of 5 years.
Coastal Towns Climate Resilience Project will be executed by LGED under the local government division. The objective of the project is to strengthen climate and disaster resilience of the selected coastal towns at risk and improve the quality of life of women and poor in the locality.
15 Pourashovas from 6 districts of Barisal division, 5 Pourashovas from 3 districts of Khulna division, and 2 Pourashovas of Shariatpur district of Dhaka division are covered by this project. The estimated completion date of the project is 30 June 2029.
ADB's $250 million support for this project includes a $150 million ordinary operations (Concessional) loan, a $96 million regular loan, and $4 million grants. The loan is repayable in 25 years with a grace period of 5 years.
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The interest rate on concessional loans is 2 percent fixed. OCR (regular) loan interest rate is SOFR (Secured Overnight Financing Rate) + 0.50 percent, including maturity premium at the rate of 0.10 percent and commitment charge at the rate of 0.15 percent on undisbursed amount.
Third Public-Private Infrastructure Development Facility-2 will be implemented by Infrastructure Development Company Limited (IDCOL) to invest in infrastructure projects developed under the Public-Private Partnership (PPP) model.
Estimated completion date of the project is June 2027. The ADB loan for this project has two components- $262.29 million ordinary operations (Regular) and $16 million ordinary operations (Concessional) that will support investment in energy efficiency and renewable energy solutions. Both loans have a repayment period of 25 years, including a 5 year grace period.
Since 1973, ADB has been one of the largest multilateral development partners of Bangladesh extending development assistance to the country. ADB's total loan to Bangladesh till now is more than $27.844 billion and the total grant is about $0.541 billion.
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