The Asian Development Bank (ADB) is to lend Bangladesh $96.1 million to help fund a rural infrastructure and local governance development project. The total cost of the project is estimated at $260.5 million, with the government contributing $78.3 million.
The UK Department for International Development and the German Development Co-operation are considering co-financing the balance of $86.1 million, the ADB said in a statement. The project will upgrade 9,920 km (6,164 miles) of rural roads, 370 rural markets and the offices of 190 union councils to help reduce poverty in 23 districts in north and central Bangladesh.
More than 6 million people are expected to benefit from better access to markets and social services, resulting in an estimated 20 percent increase in a family's average farm income and about 7,000 women employed in new jobs, the ADB said. The ADB loan carries a 1.00 percent annual service charge and is repayable in 32 years, including an 8-year grace period.