Dhaka, Monday, February 19, 2018


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ADB to give $200m for municipality development

DHAKA, Sept 13, 2017 (BSS) - Asian Development Bank (ADB) will provide US$ 200 million to Bangladesh to strengthen urban governance and improve urban infrastructures and service delivery in pourashavas (municipalities) across the country.

"The ADB fund will develop pourashavas with high growth potential in an integrated and holistic way both in terms of governance and infrastructure with an aim at making them model towns of the country," an Economic Relation Division (ERD) official told BSS here today.

A loan agreement to this end will be signed on September 19 at the NEC-II Conference Room at the ERD in the city's Sher-e-Bangla Nagar area.

ERD Secretary Kazi Shofiqul Azam and ADB Country Director Kazuhiko Higuchi will sign the agreement on behalf of their respective sides.

After the successful implementation of earlier phases, the project titled "Third Urban Governance and Infrastructure Improvement (Sector) Project (UGIIP-3)-Additional Financing" will provide investment funds to 35 pourashavas based on their governance performance.

In addition to the focused interventions to these towns, the project will roll out application of governance performance criteria linked with fund allocation to all class-A pourashavas, in the country.

ADB will provide the loan to develop urban roads and traffic management and to ensure water and other urban infrastructures and services of pourashavas for environmentally sustainable and inclusive economic growth.

The other urban services are urban flood protection, urban policy, institutional and capacity development, urban sanitation, urban slum development, urban solid waste management and urban water supply.

In the government's Seventh Five-Year Plan (2016-2020), urban development is a national priority to reduce urban poverty and improve living conditions through better city governance and service improvement.

In line with this policy direction, UGIIP-3 supports strengthening of urban governance and improvement of urban infrastructure and service delivery in pourashavas by providing investment support to pourashavas with high potential growth based on their governance performance.

The additional financing will expand the well-performing UGIIP-3 and invest in additional priority infrastructure and governance improvement for pourashavas under the current project, and infrastructure and governance improvement in five new pre-selected pourashavas.

Performance-based fund allocation for all class-A pourashavas in the country, where class-B and -C pourashavas can voluntarily participate, will continue to be rolled-out under the additional financing.

The project is fully consistent with ADB's urban operational addressing inclusiveness, environmental sustainability, and competitiveness, and Bangladesh country partnership strategy (CPS) which prioritizes inclusive and environmental sustainable growth, governance improvement, and climate and disaster resilient infrastructure and services.