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POST TIME: 12 December, 2019 00:00 00 AM
ADB to provide $333m for power, transportation sectors
BSS, Dhaka

ADB to provide $333m for power, transportation sectors

The Asian Development Bank (ADB) will provide US$333.26 million loans for expansion of power transmission lines and designing the Dhaka Mass Rapid Transit (MRT) line.

In this regard, the government yesterday inked several agreements with ADB at a function at the National Economic Council (NEC) conference room in the capital, said a press release.

Economic Relations Division (ERD) Secretary Monowar Ahmed and ADB Country Director Manmohan Parkash signed the agreements on behalf of their respective sides.

For expanding power transmission lines in greater Dhaka and the western zone of Bangladesh, the government signed agreement for €271.84 million ($300 million equivalent) loans.

Besides ADB’s loan, the Asian Infrastructure Investment Bank (AIIB) is considering $200 million in co-financing to finance transmission lines, substations and an enterprise resource planning system.

The assistance also comprises a $750,000 grant from the People’s Republic of China’s Poverty Reduction and Regional Cooperation Fund (PRC Fund).

Manmohan Parkash said upgrading and expanding the transmission network is crucial to improve power supply efficiency after significant improvement in power production in Bangladesh.

“The project will help achieve the government target of electricity for all by 2021 by improving the reliability and efficiency of the electricity supply in the greater Dhaka and western zone of Bangladesh,” he added.