The ADB’s loan is repayable in 25 years and features a five-year grace period. Credit: Denley Photography via Unsplash.

The Asian Development Bank (ADB) has signed a $400m loan agreement with the Bangladesh government to support the construction of a new rail line.

This $400m sum is the third instalment of a $1.5bn loan from the ADB for the South Asia Subregional Economic Cooperation’s Chattogram-Cox’s Bazar Railway Project.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The new 102km dual gauge track will be built from Dohazari to the Cox’s Bazar section of the Chittagong-Cox’s Bazar Railway Corridor located in south-east Bangladesh.

The Chittagong-Cox’s Bazar railway corridor is part of the Trans-Asian Railway (TAR) network. Construction of the 47km section Chittagong-Dohazari is being financed by the government using its own funds.

Representatives of the ADB and the Bangladesh government signed the agreement in Bangladesh’s capital city, Dhaka.

This new rail link will help boost trade, investment, and tourism and is expected to open later this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

By next year, it is expected to be able to transport 2.9 million passengers per year between Chattogram and Cox’s Bazar.

The loan is repayable in 25 years and comes with a grace period of five years.

The TAR network is a UN programme aimed at providing continuous train connectivity between Asia and Europe, with the primary objective of effectively connecting people and markets.

The ADB’s deputy country director for Bangladesh Jiangbo Ning said it is a “priority investment” that will open up unserved parts of the Cox’s Bazaar region.