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

The Asian Development Bank (ADB) will provide 400 million US dollars in loans to Bangladesh for the construction of 102 kilometers long dual gauge railways between Chattogram and Cox’s Bazar to promote trade, investment and tourism.

The loan agreement was signed between the representatives of ADB and the government of Bangladesh in Dhaka on Sunday. The new rail link is expected to open this year. It aims to transport 2.9 million passengers annually between Chattogram and Cox’s Bazar by 2024.

Chattogram-Cox’s Bazar Railway is part of the Trans-Asia Railway (TAR) network, an initiative led by the United Nations, aiming to provide seamless rail links between Asia and Europe to better connect people and markets. TAR network provides a coordinated plan for developing a regional rail network to support intra- and inter-regional trade and transport. The 128,000-kilometre-long rail network passes through 28 countries and was formalised through an Inter-governmental Agreement on Trans-Asian Railway network in 2009.

The assistance forms the third part of USD 1.5 billion ADB loans for the SASEC’s (South Asia Subregional Economic Cooperation) Chattogram-Cox’s Bazar Railway Project.

ADB Deputy Country Director for Bangladesh Jiangbo Ning called it a ‘priority investment’ which will open the unserved areas of Cox’s Bazaar region by promoting investment, trade and tourism. He said that the ADB is assisting the government to shift from road to rail, which is a climate-friendly, safe, affordable, and efficient mode of transport