ZCZC
BSS-37
AIIB-LOAN-CONNECTIVITY
AIIB approves $404m for Bangladesh to improve cross-border connectivity
BEIJING, China, April 2, 2020 (BSS) – The Asian Infrastructure Investment
Bank (AIIB) has approved a US$404 million loan to improve Bangladesh’s
intercity travel and cross-border connectivity.
The upgrade of the country’s national highway between Sylhet and the
Tamabil border crossing will improve overall commuter safety and reduce
travel times for road users, including freight vehicles and buses, said an
AIIB press release here today.
The Sylhet-Tamabil road (about 56.16 kilometers) is part of the Dhaka-
Narsingdi-Sylhet-Tamabil National Highway corridor with a total length of 286
kilometers. The corridor is strategically important for sub-regional
connectivity with seven northeastern states of India, as well as Bhutan,
Myanmar and China.
Project funds will go toward the construction, operation and maintenance
of roads, in addition to institutional and project management support.
AIIB Vice President (Investment Operations) DJ Pandian said as the first
stand-alone transport project supported by AIIB in Bangladesh, the project
will allow the Bank to gain experience in cross-border connectivity in South
Asia.
“At the same time, the project will allow the country to improve
sustainability and potentially attract private sector participation and
community involvement in road maintenance,” he added.
In 2018, Bangladesh received an $813,000 non-reimbursable grant from
AIIB’s Special Fund to assist with the project’s preparation.
Established in 2016, the Special Fund is a multi donor facility with the
primary purpose of supporting eligible AIIB members, especially low-income
members, prepare bankable infrastructure projects.
BSS/PR/KUC/GA//1801 hrs