Asian Development Bank to provide 400 million US dollars in loans to Bangladesh

Tags: Economy/Finance International News

Asian-Development-Bank-to-provide-400-million-US-dollarsThe Asian Development Bank (ADB) has signed a loan agreement with the government of Bangladesh to provide $400 million for the construction of a dual gauge railway between Chattogram and Cox's Bazar.

An overview of the news

  • The purpose of the railway project is to promote trade, investment, and tourism in Bangladesh.

  • The new rail link is expected to open this year and aims to transport approximately 2.9 million passengers annually between Chattogram and Cox's Bazar by 2024.

  • The ADB is supporting the government's shift from road to rail transport, as rail is considered a climate-friendly, safe, affordable, and efficient mode of transportation.

Chattogram-Cox's Bazar Railway

  • The Chattogram-Cox's Bazar Railway is part of the Trans-Asia Railway (TAR) network, which is an initiative led by the United Nations. 

  • The TAR network aims to establish seamless rail links between Asia and Europe to enhance connectivity between people and markets.

  • The TAR network covers a total of 128,000 kilometers and passes through 28 countries

  • It was formalized through an Inter-governmental Agreement on Trans-Asian Railway network in 2009.

  • The assistance provided by ADB for the Chattogram-Cox's Bazar Railway Project is the third part of a $1.5 billion loan package for the South Asia Subregional Economic Cooperation (SASEC) initiative.

Asian Development Bank (ADB)

  • It is a regional multilateral financial institution which focuses on the countries of Asia and Pacific region.

  • It was set up after a resolution was passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963.

  • It started functioning from 19 December 1966 with 31 member countries.

  • At present it has 68 members—of which 49 members are from within Asia and the Pacific and 19 outside.

  • Japan is the largest shareholder of the ADB and a Japanese has always been the head of the ADB.

  • President of ADB: Masatsugu Asakawa 

  • Headquarters: Mandaluyong City, Manila, Philippines

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