ADB approves $100 million for Bangladesh rural road development

The Asian Development Bank has approved a $100 million loan to expand the coverage of an ongoing rural road network improvement project in Bangladesh, connecting the rural population to agricultural development zones.

This additional financing will scale up the current road network development, under the Rural Connectivity Improvement Project, from 1,700 kilometres to 2,630km of rural roads, ADB said on Monday.

It will build on the $200 million financial package approved in 2018 aimed at upgrading rural roads in 34 districts to all-weather standards with climate resilience and safety features.

The expanded project will benefit 40.2 million inhabitants, it said.

Manila-based multilateral lender said in a press release that the additional funding would also supplement the government’s infrastructure spending to boost the local economy, which has been affected by the COVID-19 pandemic.

Infrastructure spending will generate local employment, increase access of rural communities to health services and medical supplies, and lay the ground for long-term growth prospects of the economy, it said.

The Rural Connectivity Improvement Project supports the government’s seventh five year plan to increase the percentage of the country’s rural roads classified as good from 43 per cent in 2016 to 80 per cent in 2020.

The total cost of the project, which is expected to be completed by 2024, is $449.23 million, with the Government of Bangladesh contributing $149.23 million.

News Courtesy: www.newagebd.net