• Tuesday, Oct 27, 2020
  • Last Update : 10:17 am

ADB to provide $400 million for Chittagong-Cox’s Bazar rail link

  • Published at 01:47 pm May 23rd, 2019
railway-Rail line
Railway Track File Photo

Its goal is to promote trade, investment, and tourism in Bangladesh

The Asian Development Bank (ADB) will provide $400 million to build a dual gauge railway line between Chittagong and Cox’s Bazar.

A loan agreement to this effect was signed between ADB and the government's Economic Relations Division (ERD) on Thursday.

Monowar Ahmed, ERD secretary, and Manmohan Parkash, country director of ADB, signed the deal at the ERD office in Dhaka.

Once completed, the railway link will help promote trade and tourism in the country, officials said.

The assistance forms the second part of a $1.5-billion ADB loan for the South Asia Subregional Economic Cooperation (SASEC) Chittagong-Cox’s Bazar  Railway Project. The loan will finance around 27% of the construction of a 102-kilometre railway line between Chittagong and Cox’s Bazar.

“ADB is committed to helping Bangladesh develop its railways, which is a safe, affordable and environment friendly mode of transport,”  Manmohan said. 

The project is a priority investment under Bangladesh's Seventh Five-Year Plan, and will open up the unserved areas of Cox’s Bazar region by promoting investment, trade and tourism.

The project also integrates features that are friendly towards the elderly, women, children and people with disabilities, said Manmohan.

Moreover, the government said it would boost the tourism industry by increasing connectivity.

“ADB is supporting Bangladesh in many ways, particularly in railways. This is one of the great and timely projects. This will not only enhance the connectivity, but also have an impact on establishing better connectivity with the neighboring countries,” said ERD  Secretary Monowar Ahmed.

The loan is payable in 25 years, including a 5-year grace period, with interstate of Euribor +0.5%,  maturity premium of 0.1%, and commitment charge of 0.15%.

The new rail link, which is scheduled to open in 2023, aims to transport 2.9 million passengers annually between Chittagong and Cox’s Bazar by 2024.

The Chittagong-Cox’s Bazar Railway is part of the Trans-Asia network, an initiative led by the United Nation, aiming to provide seamless rail links between Asia and Europe to better connect people and markets.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail