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ADB to provide $ 6.135bn over 3 yrs

January 8th, 2016 | by admin
ADB to provide $ 6.135bn over 3 yrs
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The Asian Development Bank (ADB) is likely to provide at least $ 6.135 billion to Bangladesh over the next three years for mainly energy, education, regional connectivity, and road transport and railway network.

According to the new 2016-2018 ADB Country Operations Business Plan (COBP) for Bangladesh, the ADB, under the programme, will support the government’s current and emerging development priorities, including activities to sustain strong and inclusive economic growth and vigorous human development, UNB reports.

The 2016-2018 COBP will support continued government efforts in industrial development to diversify the economy and in rural development to manage urbanisation.

The ADB will prioritise activities to develop infrastructure, skills, resilience to environmental and climate change, the private sector, and regional cooperation and integration.

Talking to UNB, officials at the Economic Relations Division (ERD) and ADB’s Bangladesh resident mission said of the total amount earmarked for 2016-2018, the indicative resources available for sovereign operations is $ 2,778 million, comprising $ 1,502 million in market-based ordinary capital resources (OCR) and $ 1,276 million in Asian Development Fund (ADF) and concessional OCR resources.

The rest of $ 3,350 million will be available as standby funds for the country.

According to the COBP, the final allocation will depend on the availability of the ADF and concessional OCR resources as well as the outcome of the country’s performance assessments by the bank. The pipeline will be revisited during the next country programming exercise in 2016.

The ADB will hold consultations with the government to explore opportunities for co-financing to increase the scope of projects. Private sector operations will be catalysed using the ADB’s non-sovereign lending products.

The COBP will continue to focus on the generation, transmission, and distribution of electricity; improving energy efficiency; and developing regional cooperation in power trading.

The Natural Gas Development and Distribution Project MFF, with tranche-I having possible ADB financing of $ 150 million in 2016 listed as standby, will support expanding delivery of domestic gas and imported liquefied natural gas.

Project Preparatory Facility for Power Sector (TA loan) in 2016 will support early project preparation in the power sector. The Rural Hybrid Power Development Project in 2017 (standby) with ADB funding of $ 120 million will support rural communities and renewable energy development.

The ADB will focus on improving road maintenance, increasing the capacity of regional road corridor from Dhaka to northwestern Bangladesh, and building the Dhaka-Chittagong-Cox’s Bazar railway corridor.

Additional financing for Sub-regional Transport Project Preparatory Facility (TA loan), approved in 2015, will support the preparation for the improvement of 600 km of roads in eight sub-regional corridors, and the conversion of the Dhaka-Chittagong-Cox’s Bazar rail corridor to dual-gauge from meter gauge. Tranche-I of the SASEC Roads Connectivity Project II worth $ 350 million is scheduled for 2017.

The first tranche for the SASEC Chittagong-Cox’s Bazar Railway Project Phase-1 with $ 200 million ADB funding in 2016 (standby) will finance a new 100-km railway line.

The COBP strengthens the ADB involvement in primary and secondary education, skill development and science, technology and innovation.

Tranche-III of the Skills for Employment Investment Programme in 2017 with $ 150 million will support policy and institutional reforms and improving job placements.

The Information Technology Parks for Employment in 2017 (standby) with ADB funding of $250 million will support skills development in technology and innovation. In the finance sector, the ADB’s focus will remain on the development of a capital market, small and medium-sized enterprises (SMEs), and infrastructure financing.

The Third Public-Private Infrastructure Development Facility Project in 2016 (standby) with possible ADB financing of $ 180 million will address infrastructure deficiencies by providing long-term debt financing for private sector-sponsored infrastructure projects.

The ADB will support the integrated planning process for climate change mitigation and adaptation, water supply and sanitation in large cities, urban primary health care, and governance. A PDA in 2016 will support preparation of the Tranche-I sub-project of the City Region Development Investment Programme.

Source: The Daily Sun

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