Bangla to get $ 170 mn loans for railway reform

By Staff
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Google Oneindia News

Dhaka, Feb 15: The Bangladesh government signed a 0 million loan agreement with the Asian Development Bank (ADB) and the World Bank on Thursday to help revamp the country's railway system.

''Of the total 0 million, ADB is providing 0 million, and the World Bank million,'' a joint statement said.

The project supports the government's efforts to transform Bangladesh Railway into a well-managed, customer-focused organisation. A corporatized Bangladesh railway would operate like a business, while remaining fully government-owned, the statement said.

It is part of a long-term strategic partnership between the government, the World Bank, ADB, the Japan Bank for International Cooperation (JBIC) and Britain's Department for International Development (DFID) to help meet the transport needs of Bangladesh's growing economy.

The World Bank support will be followed by another proposed development policy credit of million for the Railway Reform Program in 2009.

A further 0 million in credit is also planned for 2009 to support another government initiative to improve infrastructure and the network expansion of railways, the statement said.

The Railway Sector Investment Program entails a total of 4.5 million, of which ADB will provide 0 million, with another 0 million from the World Bank, 0 million from JBIC, and with the balance provided by the government of Bangladesh.

Bangladesh Railway -- the second biggest transport system after the road network -- has long been an ailing state enterprise, losing 2.49 billion taka (.7 million) in the fiscal year to June 2006.


Reuters

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