Manila, Aug 25, 2006 AEST (ABN Newswire) - A US$96.1 million loan from the Asian Development Bank (ASX: ATB) will help expand economic opportunities for the rural poor in Bangladesh by improving rural infrastructure and local governance.
The project will upgrade a total of about 9,920 kilometers of tertiary roads that make up the rural road network, as well as 370 rural markets and the offices and facilities of 190 union councils, to help reduce poverty in 23 districts in north and central Bangladesh. A union is a small local government unit and their improved facilities can provide the poor with ready access to services.
The 23 districts, located in Rajshahi, Dhaka, and Chittagong, were selected for their poverty, poorly developed road infrastructure, and need for strengthened local governance. About 55% of the rural residents in the area covered by the project live below the poverty line, and less than half of its rural roads are in good condition.
"Efficient rural transport and supporting infrastructure are indispensable to reducing poverty and achieving rapid economic development in Bangladesh," says Ki Hee Ryu, Head of the Project Administration Unit in ADB's Nepal Resident Mission.
"These improvements will provide local inhabitants with more efficient transport to markets and trading centers, as well as access to social and welfare services. This should lay the foundation for better economic opportunities."
The project will also strengthen local government units to enable them to manage and maintain the local infrastructure. Bus owners and operators, rickshaw drivers, farmers and local traders will be consulted on their transport needs.
More than 6 million people are expected to benefit from better access to markets and social services, resulting in an estimated 20% increase in a family's average farm income and about 7,000 women employed in new jobs.
The project's total cost is estimated at $260.5 million, with the Government contributing $78.3 million. Co-financing for the balance of $86.1 million is being considered by the United Kingdom's Department for International Development and German Development Cooperation through the Kreditanstalt fur Wideraufbau and Deutsche Gesellschaft fur Technische Zusammenarbeit.
ADB's loan comes from its concessional Asian Development Fund. It carries a 32-year term, including a grace period of 8 years. Annual interest charge is 1% during the grace period and 1.5% thereafter.
The Local Government Engineering Department in the Ministry of Local Government, Rural Development, and Cooperatives is the executing agency for the project, which is due for completion in 2011.
Contact
Omana Nair
Email: onair@adb.org
Tel:+632 632 5178; Mobile: +63 918 914-7003
Floyd Whaley
Email: fwhaley@adb.org
Tel:+632 632 6848; Mobile: +63 920 938 6488
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