ADB providing 505 mln USD for Bangladeshi railway project to bolster domestic, sub-regional trade

DHAKA, June 29 (NsNewsWire) — The Bangladeshi government and the Asian Development Bank have signed two agreements for 505 million U.S. dollars in loans for further development of the country’s railway services aimed at bolstering domestic and sub-regional trade.
Mohammad Mejbahuddin, senior secretary of Bangladesh’s Economic Relations Division (ERD), and Kazuhiko Higuchi, ADB country director in Bangladesh, inked the deals on behalf of their respective sides here on Sunday evening, reports Xinhua.
According to a statement from the Manila-based lender, the South Asia Sub-regional Economic Cooperation (SASEC) Railway Connectivity: Akhaura-Laksam Double Track Project will help upgrade the 72-kilometer Akhaura-Laksam section of the Dhaka– Chittagong railway corridor to a double track dual-gauge railway line, along with modern signaling equipment.
It also said 11 railway stations will be reconstructed with special facilities for the elderly, women, children, and disabled.
The total project cost is 805 million U.S. dollars.
The European Investment Bank (EIB) will co-finance the project with 175 million U.S. dollars while the Bangladeshi government will provide 125 million U.S. dollars.
The project will be executed by Bangladesh Railway and is expected to be completed by 2022.
“The assistance will help railways better serve needs of people and movement of goods, and help improve domestic and sub-regional trade,” said Higuchi.
“This project will also help improve the overall railway transport system in Bangladesh, and aims to reduce transport costs and improve logistics of strategic corridors, such as Dhaka– Chittagong link, for sub-regional trade.” he added.  Enditem