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

Tags: Economy/Finance International News

The 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