The New Nation - Internet Edition

Staff Reporter

The Bangladesh government signed loan and project agreements totalling $190 million with the Asian Development Bank yesterday.

The agreements were signed for funding a project aimed at accelerating economic growth through recovery from the colossal damage done by the last floods and cyclone in the country.

Economic Relations Division Secretary M Aminul Islam Bhuiyan for the government while ADB Country Director Hua Du on behalf of the ADB signed the agreements at a ceremony at ERD office, Sher-e-Bangla Nagar in the city.

ADB is extending a loan of $120 million equivalent from its confessional Asian Development Fund and a $200,000 technical assistance grant to the Emergency Disaster Damage Rehabilitation Sector Project.

Japan Bank for International Cooperation is extending a $60 million loan and the Canadian International Development Agency is preparing a grant of $10 million for the project. Further co-financing is expected from other partners through ADB. The government is providing $30 million to complete funding requirement.

"The project will contribute to sustainable economic growth by minimising the devastating impact of the severe floods and cyclone that hit the country last year and, at the same time, reduce future risk from similar catastrophes," said Hua Du, ADB's Country Director for Bangladesh.

She said the project would also assist in capacity building and training to strengthen government's disaster preparedness by adopting cost-effective and disaster-resistant infrastructure design standards and improve early warning system through increased sub-regional cooperation.

The project would be implemented over two and a half years from January 2008 to June 2010 through LGED, R&HD and BWDB.

Its main objective is to sustain economic development by supporting

government efforts to rehabilitate high-priority and essential infrastructures damaged in the 2007 flooding and cyclone Sidr

The project would be implemented in five parts. The first would provide financing to import essential commodities and inputs, particularly for agriculture, to ensure quick recovery. The component is the main under the project with a budget of $75.56 million of the total project cost.

The second component, which has an allocation of $33.57 million, involves the rehabilitation and restoration of rural infrastructure in 23 districts, including 3,000 kilometers of rural roads and 9,000 meters of bridges and culverts. It also involves the development or rehabilitation of 300 flood and cyclone shelters, including those for livestock, to help communities during future disasters.

The next part covers the rehabilitation of urban infrastructure, including 700 kilometers of roads, 65 kilometers of drains, 850 meters of bridges and culverts, and footpaths in 30 municipalities. This component will have a funding of $20.89 million.

The fourth component, which will be provided with $46.43 million in funding, will involve the repair of 800 kilometers of damaged national, regional, and district roads, as well as 64 bridges and culverts within the country's seven road zones.

The last part consists of repairs for flood control, drainage and irrigation facilities, and embankment breaches. Flood control structures, protective work and canals in districts will also be replaced. The fifth component was allotted $31.70 million. In addition, $9.85 million will be used for project implementation support.