The government inked a deal with Asian Development Bank (ADB), which is to finance US$400 million in loan to help build a dual-gauge railway connecting Chattogram and Cox’s Bazar on May 23.

Officials said the assistance forms the second part of $1.5 billion ADB loans for the SASEC Chattogram-Cox’s Bazar Railway Project.

They said the loan would finance around 27 percent of the progress towards constructing 102 kilometers of the new railway line between Chattogram and Cox’s Bazar, expecting to boost trade and tourism.

Economic Relations Division (ERD) Secretary Monowar Ahmed and ADB Country Director Manmohan Parkash signed the agreement on their respective sides at the ERD at Sher-e-Bangla Nagar, reports BSS.

The assistance forms the second part of $1.5 billion ADB loans for the SASEC Chattogram-Cox’s Bazar Railway Project. The loan will finance around 27 percent of the progress towards constructing 102 kilometers of new railway line between Chattogram and Cox’s Bazar.

“ADB is committed to help Bangladesh develop its railways, which is a safe, affordable and environment-friendly mode of transport,” ADB’s Country Director in Dhaka Manmohan Parkash said in a statement coinciding with the signing ceremony.

He said the project is a priority investment under Bangladesh’s Seventh Five Year Plan which was expected to open up the un-served areas of Cox’s Bazar region by promoting investment, trade and tourism.

“The project also integrates features that are friendly to the elderly, women, children, and people with disabilities,” Parkash said.

The new rail link, which opens in 2023, aims to transport 2.9 million passengers annually between Chattogram and Cox’s Bazar by 2024.

The construction of this railway section is one of several ADB railway projects to help Bangladesh meet its targets under its Seventh Five-Year Plan and Railway Master Plan.

Chattogram-Cox’s Bazar Railway is part of the Trans-Asia Railway network, an initiative led by United Nations, aiming to provide seamless rail links between Asia and Europe to better connect people and markets.