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IDA to provide $236m credit

UNB, Dhaka
Bangladesh will get $236.12 million, equivalent to Tk 1,369.50 crore, as credit from the International Development Association (IDA) for implementing three projects.
Separate agreements in this regard were signed here yesterday between the government and the IDA, the soft loan window of the World Bank.
An official handout said ERD (Economic Relations Division) Secretary Mirza Tasadduq Hossain Beg and outgoing World Bank Country Director Frederick T Temple signed the agreements.
Under one agreement, the IDA
will provide a credit of $190 million, equivalent to Tk 1,102 crore, for Rural Transport Improvement Project (RTIP) in Bangladesh.
The credit carries a service charge of three-fourths of one per cent a year repayable in 40 years including a 10-year grace.
The Local Government Engineering Department would execute the project over a period of five years commencing next September.
The objectives of the project are to provide rural communities with improved access to social services and economic opportunity and enhance the capacity of relevant
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institutions to better manage rural transport infrastructure.
Under the other agreement, $37 million, equivalent to Tk 214.60 crore, would be provided for the Central Bank Strengthening Project (CBSP).
The credit will be provided at a service charge of three-fourths of one per cent a year repayable in 40 years including a grace of 10 years. The closing date of the project will be December 31 this year.
In addition to the $37 million IDA credit, the Bangladesh Bank would provide $9.13 million for the project.
The project is aimed at strengthening the central bank to enable it to play its due role as the country's monetary authority, bank regulator and supervisor.
It is also designed to enable the central bank to lead the design and implementation of a medium to long-tem reform programme in order to achieve a sound and
efficient financial system.
The project consists of three parts: (I) Strengthening the legal framework, (II) Reorganisation and modernisation of Bangladesh Bank which include human resources development and automation of the bank and (III) Capacity building including strengthening the research department, accounting and auditing standards, and enhancing Bangladesh Bank's regulatory and supervisory capabilities.
IDA will provide $9.12 million, equivalent to Tk 52.90 crore, for a Telecommunications Technical Assistance Project (TTAP).
The credit carries the same service charge of three-fourths of one per cent a year repayable in 40 years, including a 10-year grace.
Posts and
Telecommunications Ministry and Bangladesh
Telecommunication Regulatory Commission (BTRC) will jointly implement the project in four years starting from September.