Deals signed with ADB to improve municipal services
19 Sep 2017, 18:37
Dhaka: Bangladesh government on Tuesday signed $200 million loan agreements with the Asian Development Bank (ADB) to strengthen urban infrastructure, service delivery and management in Bangladesh's municipalities.
Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and ABD Country Director in Bangladesh Kazuhiko Higuchi inked the agreements on behalf of their respective sides at a ceremony at the ERD.
Mentioning that the ongoing project for improving urban infrastructure and services in 30 municipalities nationwide has been progressing well, Kazuhiko Higuchi said the strong performance has enabled additional loans to further enhance the benefits of the project and bring them to a larger group of people around the country.
The additional financing for the 3rd Urban Governance and Infrastructure Improvement (Sector) Project will increase the total ADB loans for the project to $325 million, and help continue improving the priority infrastructure and services, and strengthening their managing capacities, in the 30 existing and five newly added municipalities with a total population of 3.1 million.
The project emphasises promoting climate resilience and gender equity, and includes flood protection, urban roads, water supply and sanitation, solid waste management, other urban services, and their capacity strengthening.
Underdeveloped areas will receive special attention. The project will contribute to Sustainable Development Goal 11: making cities and human settlements inclusive, safe, resilient, and sustainable.
The project also focuses on strengthening municipal financial management through system and procedural enhancements. The project is due for completion in 2021.
The project, first approved in 2014, builds on two successful previous projects: the first performance-based urban project completed in 2007 with a $65 million loan that supported management and infrastructure improvements in 27 municipalities, and the second project completed in 2016 with a $87 million loan that broadened the support to 51 municipalities.