ADB to fund municipalities development project

Asian Development Bank (ADB) is set to loan Bangladesh $200 million for a project to strengthen urban governance, improve urban infrastructures and service delivery in municipalities across the country.

To this end, Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and ADB Country Director Kazuhiko Higuchi will sign an agreement on behalf of their respective sides on Tuesday at the NEC Conference Room in Sher-e-Bangla Nagar, according to a press release.

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, as per a report on BSS.

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

The urban services include 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.