Today, the Asian Development Bank (ADB) and the Bangladeshi government inked loan agreements totaling around $1.026 billion for five projects pertaining to energy, health, education, Chattogram Hill Tracts, and road connectivity inside the nation.
$100 million will go toward the Improving Computer and Software Engineering Tertiary Education Project, $300 million toward the Third tranche of the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, $90 million toward the Chattogram Hill Tracts Inclusive and Resilient Urban Water Supply and Sanitation Project, $200 million toward the Smart Metering Energy Efficiency Improvement Project, and $336.5 million toward the Vaccines, Therapeutics, and Diagnostics Manufacturing and Regulatory Strengthening Project.
Md. Shahriar Kader Siddiky. Secretary, Economic Relations Division (ERD), Ministry of Finance and Edimon Ginting, Country Director, Bangladesh Resident Mission, ADB signed the loan agreements on behalf of Bangladesh and ADB respectively.
Among the total credit amounts signed today, the ADB approved $68.22 million and €277.881 million (equivalent to $300 Million) from OCR (Regular). The interest rate is SOFR (Secured Overnight Financing Rate) /Euribor (Euro Interbank Offer Rate) 0.50% with a maturity premium of 0.10% and a commitment charge of 0.15% on undisbursed mount.
The remaining $358.25 million comes from concessional ordinary operations. Concessional loans have an interest rate that is fixed at 2%. The 25-year repayment term for both loans includes a 5-year grace period.
In response to questions about the Smart Metering project, ADB country director Edimon Ginting stated that it would increase customer awareness of safe and efficient gas use, conserve gas, and improve revenue streams while lowering expenses associated with billing, collection, and monitoring.
“This project will also contribute to meet Bangladesh’s climate mitigation targets for the gas distribution subsector as set out in the updated 2021 nationally determined contributions,” Ginting added.
