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ADB funds for bridge project in Bangladesh
26 November 2010: The Asian Development Bank (ADB) has sanctioned a loan for the construction of a multipurpose bridge across the Padma River.
The ADB is likely to provide financial aid of $615 million (approx Rs 2,767.5 crore). ADB is providing over 21 per cent of the total investment cost of nearly $2.92 billion (approx Rs 13,140 crore) for the bridge project. In addition to ADB, the World Bank, Japan International Cooperation Agency (JICA) and Islamic Development Bank are also contributing as cofinanciers.
The physical work will include the construction of a two-level steel truss bridge over six kilometers long, with a four lane highway to accommodate road vehicles on top, and a lower deck with a single track railway to be added in future. Twelve kilometers of approach roads, along with toll plazas and service areas will also be built, while dredging and river bank protection will be carried out.
ADB's assistance will be extended through two loans. The first amount of $539 million from ADB's ordinary capital resources has a 27-year tenor, with a 7-year grace period, and an annual interest rate determined in accordance with ADB's LIBOR-based lending facility. The second loan of $76 million equivalent from ADB's concessional Asian Development Fund has a 32-year tenor, with an 8-year grace period carrying an annual interest of 1%, which rises to 1.5% for the balance of the term.
The Bangladesh Bridge Authority is the executing agency for the project, which is due for completion in December 2015.
Source: Indiainfoline