ADB gives $200m to help boost urban infrastructure, services

The Asian Development Bank and the government yesterday signed loan agreements worth $200 million to strengthen urban infrastructure, service delivery and management in municipalities.

Kazi Shofiqul Azam, secretary at the Economic Relations Division (ERD), and Kazuhiko Higuchi, country director of the ADB, signed the agreements at a programme at the ERD in Dhaka, said the Manila-based lender in a statement.

“The ongoing project for improving urban infrastructure and services in 30 municipalities nationwide has been progressing well,” said Higuchi.

 “The strong performance has enabled additional loans to further enhance the benefits of the project and bring them to a larger group of people around the country.”

The additional financing for the Third Urban Governance and Infrastructure Improvement (Sector) Project will increase the total ADB loans for the project to $325 million.

This will continue to improve priority infrastructure and services and strengthen managing capacities in the 30 existing and five newly added municipalities with a total population of 3.1 million, said the statement.

The project emphasises promoting climate resilience and gender equity and includes flood protection, urban roads, water supply and sanitation, solid waste management, other urban services and their capacity strengthening.

Underdeveloped areas will receive special attention, according to the statement. 

“The project will contribute to the Sustainable Development Goal 11: making cities and human settlements inclusive, safe, resilient, and sustainable.”

The project also focuses on strengthening municipal financial management through system and procedural enhancements. The project is due for completion in 2021.