ADB to give $8b loan over five years

Asian Development Bank (ADB) will lend the public and private sectors of Bangladesh $8 billion over the next five years to strengthen its economy and trade links within the region.

The loan will be disbursed in accordance to the Bangladesh Country Partnership Strategy (CPS) for 2016-2020, endorsed on Thursday by the ADB Board of Directors at its meeting in Manila, Philippines, reports BSS.

In the previous CPS period of 2011-2015, ADB lending to Bangladesh exceeded $5.0 billion.

"Bangladesh halved poverty as targeted under the Millennium Development Goals, and reached middle-income status following decade-long strong economic growth," said Kazuhiko Higuchi, country director of ADB`s Bangladesh office following the endorsement of the CPS.

He said the new CPS is in accordance to government`s goals of creating new sources of growth, generating employment, and supporting rural development for regionally balanced growth.

"Based on ADB`s core strengths, the CPS will help ease infrastructure constraints, boost human capital, promote economic corridor development, improve rural livelihoods, and provide climate-and-disaster-resilient infrastructure and services", ADB said in a press release.

It said that the CPS would also promote investment and growth in specific geographical areas to ensure a more integrated and higher impact while it would support further development of the Dhaka-Chittagong industrial artery, extending to Cox`s Bazar in the southeastern part of the country, and development of the southwest economic corridor from Dhaka.

ADB will also strengthen institutional capacity support at the project, sector, and country levels. - IH