ADB pledges $8 bln in loans to Bangladesh over 5 years.

[Homo Sapiens]

Industrials | Thu Sep 29, 2016 | 5:44am EDT
ADB pledges $8 bln in loans to Bangladesh over 5 years


The Asian Development Bank (ADB) said on Thursday it will lend Bangladesh $8 billion in low-interest loans over the next five years to improve infrastructure.

The ADB said it "will increase public- and private-sector lending to Bangladesh to $8.0 billion for 2016 through 2020 to help the country build the infrastructure and skills needed for a strong, diversified economy and to strengthen trade links within the region."

The lending will be focused on easing infrastructure constraints, boosting human capital, developing economic corridors, improving rural livelihoods, and providing climate- and disaster-resilient infrastructure and services.

The total lending includes a $1.5 billion loan to build a railway line that will bring trade and tourism to southern parts of Bangladesh, and improve access to Myanmar and elsewhere in Southeast Asia.

Poor infrastructure is often cited as one of the major hindrances to growth in the South Asian country of 160 million people.

The ADB, which is based in Manila and dominated by Japan and the United States, lent more than $5.0 billion to Bangladesh between 2011-2015.

(Reporting by Ruma Paul; Editing by Simon Cameron-Moore)
http://www.reuters.com/article/bangladesh-adb-idUSL3N1C52ZQ

 

[Homo Sapiens]

ADB gives Bangladesh $1.5 billion credit to build railway line
ADB gives Bangladesh $1.5 billion credit to build railway line
News Desk bdnews24.com

Published: 2016-09-28 22:19:32.0 BdST Updated: 2016-09-28 22:46:34.0 BdST

• 
  
  
  

The Asian Development Bank (ADB) has granted a $1.5 billion loan to Bangladesh to build a dual-gauge railway line to bring trade and tourism to southern parts of the country.






The new line is expected to also improve access to Myanmar and elsewhere in Southeast Asia, the bank said in a media statement on Wednesday.

It said this development loan, to be disbursed in four tranches until 2022, is the largest ADB has ever granted Bangladesh and the biggest to a railway project.

All the tranches have a 25-year term with a 5-year grace period. The interest rate for all except $90 million of the first tranche will be based on Libor, while the $90 million in special funds will carry an interest rate of 2 percent.

“The planned 102-kilometre stretch of railway will connect the tourist town of Cox’s Bazar with the existing Bangladesh railway network,” said Markus Roesner, Principal Transport Specialist with ADB’s South Asia Department, in the statement.

“It will provide a key boost to local and regional tourism by providing both safe and environmentally friendly connectivity from Dhaka and Chittagong.”

The rail line will be a part of the Trans-Asia Railway network, a UN-led initiative to provide seamless rail links between Asia and Europe.

The statement said building the rail section and nine stations between Chittagong’s Dohazari and Cox’s Bazar will cost a total of $2.012 billion. Of that, Bangladesh government will provide $512 million.

The ADB will also provide a further $1 million in technical assistance to help Bangladesh Railway with safeguards, safety awareness and procurement.

Around 1.9 million tourists visit the beaches of Cox’s Bazar every year and the number is expected to grow 5 percent annually when special tourist trains will operate between Dhaka and Cox’s Bazar along the new line, said the Manila-based bank.
http://bdnews24.com/economy/2016/09/28/adb-grants-bangladesh-1.5-billion-loan-to-build-railway-line

 

[I S I]

Don't fall for it.

 

[extra terrestrial]

Don't fall for it.

Well, it's not IMF...

 

[Nilgiri]

No appreciable FDI forthcoming, means loans are only option.

Which is going to be overall much worse because:

a)they have to be paid back with interest and thus need high transfer efficiency

b) this transfer efficiency is poor given there is govt bureaucracy involved compared to private companies

c) BD bureaucracy and govt management (as ranked by recent world competitiveness index) is much much worse than normal.


@alaungphaya

 

[TopCat]

No appreciable FDI forthcoming, means loans are only option.

Which is going to be overall much worse because:

a)they have to be paid back with interest and thus need high transfer efficiency

b) this transfer efficiency is poor given there is govt bureaucracy involved compared to private companies

c) BD bureaucracy and govt management (as ranked by recent world competitiveness index) is much much worse than normal.


@alaungphaya

LMAOF

 

[Banglar Bir]

why the hell do you advice on what to do ,its our internal matter, so back off from advising us

 

[Articulate]

This is good news.

BD can use the low interest loans to quickly develop infra.

 

[Godman]

No appreciable FDI forthcoming, means loans are only option.

Which is going to be overall much worse because:

a)they have to be paid back with interest and thus need high transfer efficiency

b) this transfer efficiency is poor given there is govt bureaucracy involved compared to private companies

c) BD bureaucracy and govt management (as ranked by recent world competitiveness index) is much much worse than normal.


@alaungphaya

Well ADB loans are low interest and has no geopolitical strings attached but if the government is inefficient then problems happen