The World Bank has approved a soft loan of $40 million for Bangladesh to help improve the efficiency of its railway infrastructure. The project supports government efforts to improve the capacity and management of Bangladesh Railways, the World Bank said in a statement obtained by Reuters on Saturday.
It is part of a long-term strategic partnership between the government, the World Bank, the Asian Development Bank (ADB) and the Japan Bank for International Co-operation (JBIC) to help meet the transport needs of Bangladesh's growing economy.
"It will play a catalytic role for ensuring the success of the reform program by co-ordinating with all donors and the wider government ministries and agencies," said Christine Wallich, World Bank Country Director for Bangladesh.
The project will be followed by another proposed development policy credit of $60 million for the Railway Reform Program in 2009.
A further $200 million in credit is also planned for 2009 to support another government initiative to improve infrastructure and the network expansion of railways, the World Bank said.
Last week, the ADB agreed a $430 million loan to Bangladesh over the next five years to improve its railway system. Bangladesh Railway - the second biggest transport system after the road network - has long been an ailing state enterprise, losing 2.49 billion taka ($36.7 million) in the fiscal year to June 2006.
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