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