ADB Approves $1.5 Billion Railway Project for Bangladesh
29 September 2016
The Asian Development Bank (ADB) has approved a multitranche loan of $1.5 billion to the Government of Bangladesh for construction of a key section of the Chittagong-Cox’s Bazar railway line— from Dohazari to Cox’s Bazar. This loan comprises the largest ever investment in railways by ADB.
Developing an improved railway transport system along the Chittagong–Cox’s Bazar corridor will provide efficient and safe railway transport in Bangladesh, and improve subregional connectivity and trade by improving Bangladesh’s access to Myanmar. It is also expected to boost tourism in the area. ADB is supporting the project under the South Asia Subregional Economic Cooperation (SASEC) program, which promotes intra-regional connectivity and trade among the SASEC countries.
The first tranche will provide necessary infrastructure along the 102-kilometer Dohazari–Cox’s Bazar section and strengthen the capacity of Bangladesh Railway for project implementation management. It will also build nine stations with fully inclusive accessibility features for the elderly and people with disabilities.
The first tranche will cost a total of $701 million, with ADB loans providing $301 million and the Government of Bangladesh contributing the remaining $400 million. In addition, ADB will provide $1 million from its Technical Assistance Special Fund for safeguards, safety awareness, and procurement.
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