The Asian Development Bank (ADB) and the government yesterday signed a loan agreement for $106 million to improve water resources management and agricultural productivity in rural Bangladesh.

An agreement for a grant of $17.80 million from the Government of the Netherlands was also signed. ADB will administer the grant, which will finance innovative pilot works and consulting services focusing on innovation.

Sharifa Khan, secretary of Economic Relations Division, and Edimon Ginting, ADB country director for Bangladesh, signed the agreements on behalf of Bangladesh and ADB, respectively.

To be implemented by the Local Government Engineering Department, the project will establish 150 new water management cooperative associations and strengthen 230 existing ones; support emergency reconstruction and modernization of the Bakkhali rubber dam scheme; construct 110 kilometers of farm and village roads with all-weather features; and increase participation of women, youth, and small ethnic communities.