The Asian Development Bank (ADB) and the government of Bangladesh signed an agreement for $150 million in loans to finance crucial infrastructures such as roads and drains and build capacity in two densely populated and fast-growing city regions of Dhaka and Khulna in Bangladesh on Tuesday (Oct 1).

Economic Relations Division (ERD) Secretary Monowar Ahmed and Country Director of ADB Manmohan Parkash signed the agreement on behalf of Bangladesh and ADB respectively at a ceremony at the ERD in Sher-e-Bangla Nagar, reports BSS.

The Second City Region Development Project builds on a similar such project which was completed in 2018.

ADB Country Director Manmohan Parkash said the project will bolster growth, enhance living standards, and improve mobility, flood resilience, and solid waste management in Dhaka and Khulna city regions.

“By improving institutional capacity and community awareness, the project will strengthen municipal governance, institutional coordination, and sustainable service delivery,” he added.

The ADB Country Director also said the project will also support preparation and implementation of comprehensive frameworks for the integration of urban development with south-west economic corridor (SWEC) development, and thereby contribute to establishing the SWEC as a major economic corridor in South Asia Subregional Economic Cooperation.

ADB’s finance comes in the form of a regular loan of $75 million and a concessional loan for the same amount. The Government of Bangladesh will provide financing of $73 million toward the $223 million total cost of the project, which is due to be completed by the end of June 2024, the report added.