The Asian Development Bank (ADB) will sign a US$ 615 million loan deal, the single largest package for a project, with the government Monday, June 6, for building the country's longest bridge across the Padma, officials said Wednesday.
ADB Dhaka office officials said the agency's vice president Zhao Xiaoyu and director general of its South Asia Department Sultan H. Rahman would come to Dhaka next week on the occasion of the loan deal signing.
In November last year, the board of the Manila-based Asia-Pacific anti-poverty lender approved $615 million credit for the Padma Bridge construction project.
The government has already signed loan deals with three other lenders for getting funds for the country's largest infrastructure, a $2.9 billion road-cum-railway bridge scheme.
The World Bank has already confirmed $1.2 billion, the Japanese government $420 million and the Jeddah-based Islamic Development Bank (IDB) $140 million for building the 6.15-kilometre bridge.
ADB spokesperson Gobinada Bar has said their senior executives from the headquarters will witness the signing ceremony of the Padma Bridge loan deal in Dhaka Monday.
The Manila-based lender will mobilise $539 million credit from its hard-term lending wing --Ordinary Capital Resources (OCR), with a maturity of 27 years, and a 7-year grace period.
Its annual interest rate has been determined in accordance with ADB's LIBOR (London Inter-Bank Offered Rate)-based lending facility.
Another $76 million loan from the lender's concessionary wing-- Asian Development Fund (ADF) - will be released providing 32-year repayment period, with an 8-year grace period carrying an annual interest of 1.0 per cent which rises to 1.5 per cent for the rest of the term.
In addition to attending the Padma Bridge loan deal signing ceremony in Dhaka, ADB's vice president Zhao Xiaoyu will meet finance minister AMA Muhith and economic adviser to the Prime Minister Dr. Mashiur Rahman on the same day on June 6.
thefinancialexpress
