The Asian Development Bank (ADB) has approved USD 42 million grant for Bangladesh transport connectivity improvement.
The funding will support project preparation in areas including road and rail connectivity of ports, land ports, and border crossing points as well as road and rail terminals.
The total cost of the facility is USD 57.2 million, of which the government will provide USD 15.2 million. The project readiness financing is due for completion at the end of 2024.
“Bangladesh’s transport network is critical infrastructure supporting the country’s economic activities and promoting international trade. ADB’s Transport Connectivity Improvement Preparatory Facility will help meet rapidly growing transport demand by financing feasibility studies, detailed design, and other preparatory works to support the government in preparation of road and railway projects,” said ADB Transport Specialist, Kaoru Kasahara.
Transport demand is expanding nationwide because of Bangladesh’s young and growing population and steady economic growth. Insufficient transport infrastructure results in increased costs and transport time, reduced competitiveness and efficiency of the economy, and impeded economic growth.
The government has been substantially investing in all subsectors to strengthen the country’s transport network. Improving transport connectivity at intermodal transshipment facilities is vital to achieving an optimised modal split, as targeted in the government’s Seventh Five-year Plan. The country needs to boost connectivity between different transport modes, strengthen arterial transport corridors, as well as construct bypass and connecting roads.
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