Improvement of railways

European Investment Bank to provide 135m euro loan

The European Investment Bank (EIB), the European Union’s long-term financing institution, has recently signed in Dhaka a loan agreement of 135 million euros with the government of Bangladesh to further improve the country’s railways, reports BSS.
“The EUR 135 million loan will serve to finance the construction of a second track and upgrading of the existing track along with the installation of modern signaling equipment on the 72 km section between Laksam and Akhaura in eastern Bangladesh,” S M Liaqat Ali, director of the project, told BSS. The project is part of a broader programme to upgrade the whole 321 km rail corridor between Dhaka and Chittagong, the second largest city and main seaport, by 2020, and  will also facilitate the rail connection of  landlocked Bhutan, Nepal and the northeastern  states of India with  Chittagong port.
The total project cost is approximately 555 million euros. The Asian Development Bank (ADB) will co-finance the project to the tune of 332 million euros while the government of Bangladesh will provide 88 million euros. The project will be executed by Bangladesh Railways and is expected to be completed by 2022.
“We expect the Laksam-Akhaura project to start around February next,”  Ali said.
EIB Vice-President Jonathan Taylor, responsible for the Bank’s operations in Asia, said the operation will contribute to EIB’s climate action as it will serve to reduce fuel.
He said the project will contribute to the two main objectives of EIB’s external mandate. On the one hand, it would contribute to the mitigation of climate change, by promoting a modal shift from road to rail; and on the other, the development of social and economic infrastructure, by making a key contribution to a major transportation axis, he added. “It will also have a positive effect on the health and environment of the local population.
Also, and in line with the European Union mandate guiding EIB lending in Asia, the project will promote the development of social and economic infrastructure as it will improve the efficiency of public transport and help the national economy and boost sub-regional trade.”
This is EIB’s third financing operation in the country’s public sector, the first being the 82 million euro loan in support of more efficient power generation signed in November 2013, followed in 2014 by a 100 euro million loan for improvements to Dhaka’s water supply.

Improvement of railways

European Investment Bank to provide 135m euro loan

The European Investment Bank (EIB), the European Unions long-term financing institution, has recently signed in Dhaka a loan agreement of 135 million euros with the government of Bangladesh to further improve the countrys railways, reports BSS. The EUR 135 million loan will serve to finance the construction of a second track and upgrading of the existing track along with the installation of modern signaling equipment on the 72 km section between Laksam and Akhaura in eastern Bangladesh, S M Liaqat Ali, director of the project, told BSS. The project is part of a broader programme to upgrade the whole 321 km rail corridor between Dhaka and Chittagong, the second largest city and main seaport, by 2020, and will also facilitate the rail connection of landlocked Bhutan, Nepal and the northeastern states of India with Chittagong port. The total project cost is approximately 555 million euros. The Asian Development Bank (ADB) will co-finance the project to the tune of 332 million euros while the government of Bangladesh will provide 88 million euros. The project will be executed by Bangladesh Railways and is expected to be completed by 2022. We expect the Laksam-Akhaura project to start around February next, Ali said. EIB Vice-President Jonathan Taylor, responsible for the Banks operations in Asia, said the operation will contribute to EIBs climate action as it will serve to reduce fuel. He said the project will contribute to the two main objectives of EIBs external mandate. On the one hand, it would contribute to the mitigation of climate change, by promoting a modal shift from road to rail; and on the other, the development of social and economic infrastructure, by making a key contribution to a major transportation axis, he added. It will also have a positive effect on the health and environment of the local population. Also, and in line with the European Union mandate guiding EIB lending in Asia, the project will promote the development of social and economic infrastructure as it will improve the efficiency of public transport and help the national economy and boost sub-regional trade. This is EIBs third financing operation in the countrys public sector, the first being the 82 million euro loan in support of more efficient power generation signed in November 2013, followed in 2014 by a 100 euro million loan for improvements to Dhakas water supply.