The Asian Development Bank will provide $33.26 million in loans to assist the government in designing the metro rail
The Asian Development Bank (ADB) will provide technical and financial support to the government for implementing the Mass Rapid Transit (MRT) line 5 (Southern Route) – the fourth metro rail project for Dhaka.
The ADB on Wednesday signed an agreement with the government to provide $33.26 million in loan in implementing a technical assistance project undertaken to design the $2.5 billion MRT line 5.
The technical assistance project, scheduled to prepare the design within 2023, will cost around $44.58 million in total, of which the government will spend around $11.32 million.
Economic Relations Division Secretary Monowar Ahmed and ADB Country Director Manmohan Parkash inked the deal in Dhaka on behalf of their respective sides.
Monowar Ahmed said the MRT line 5 will be considered for subsequent ADB financing.
Officials at the deal signing event said the ADB assistance will be utilised to carry out detailed feasibility studies, engineering design, and procurement documentation in preparation for the 17.4km line.
The new line, to be constructed between Gabtoli and Dasherkandi, will contain almost 13km underground line with 12 stations, while the remaining section will be elevated with four stations.
After signing the agreement, Manmohan Parkash said Dhaka city deserves a modern communication network to improve its living quality, reduce traffic congestion, and improve productivity and environment.
"It will also help raise Dhaka's share of contribution to the economy from the current rate of 35 percent," he said, adding that metro rail is an essential conduit for a populous city like Dhaka.
The government has also been intending to implement a project titled "Dhaka and Western Zone Transmission Grid Expansion Project" with financial help from the ADB and Asian Infrastructure Investment Bank (AIIB).
The government on Wednesday signed another loan agreement worth $300 million with the ADB to implement the project for expanding power transmission lines in Greater Dhaka and the Western Zone of Bangladesh.
Officials said the Power Grid Company of Bangladesh Limited will construct 40 kilometres of transmission lines and 4,450 megavolt-ampere (MVA) of substations in Greater Dhaka under the project, as well as 368km of transmission lines, 3,070 MVA of substations, and 20 bay extensions in the western zone.
Besides ADB's loan, the AIIB has been considering $200 million to finance power transmission lines, substations, and an enterprise resource planning system.
The assistance also comprises a $750,000 grant from the People's Republic of China's Poverty Reduction and Regional Cooperation Fund (PRC Fund).
The government and the executing agency will contribute $249.25 million equivalent to the $750-million project, which is due for completion towards the end of June 2024.