ADB Facility to Boost Transport Connectivity in Bangladesh
10 February 2020
The Asian Development Bank (ADB) has approved $42 million facility for project readiness financing (PRF) to improve transport connectivity in Bangladesh. The PRF will finance feasibility studies and detailed design of road and railway projects and thus promote multimodal transport.
The government of Bangladesh will provide $15.2 million of the facility’s total $57.2 million. PRF is due to be completed in 2024.
Project preparation to be supported by the PRF will be land ports and border crossing points; road and rail connectivity of intermodal transshipment facilities, such as inland container depots and inland container terminals; strengthening of corridors, which includes connecting roads, bypasses, and alternate routes; and sector-wide improvements, which includes safety, traffic management, and maintenance.
Gaps in transport infrastructure bring about high costs and increased transport time, as well as reduced competitiveness and slower economic growth. ADB’s Transport Connectivity Improvement Preparatory Facility aims to meet Bangladesh’s growing transport demand through transport infrastructure needed for economic growth and international trade.
Improving transport connectivity in Bangladesh taps into the country’s geographic and strategic advantages that could help make it a transport and trade hub for South Asia Subregional Economic Cooperation (SASEC) countries.
The new PRF facility supports initiatives to develop transport network as part of the Bangladesh government’s Seventh Five-Year Plan.