The Asian Development Bank (ADB) is giving $1.78 billion under multi-tranche financing facilities for the “South Asia Subregional Economic Cooperation Dhaka-Sylhet Corridor Road Investment Project”.
The project will be implemented under a framework financing agreement (FFA) as stated by the finance ministry. Under the framework financing agreement (FFA), $400 million for tranche-1 was approved on September 8. This project will upgrade the 209.22 kilometers of corridor to a four-lane standard with the feature of the slow-moving vehicular traffic lane which will improve the sub-regional transport and trade.
Additionally, new pavement, bridges, and flyovers, straightening of curves, railway overpass and safe entry or exit to the main road will also be constructed.
This project will improve the institutional capacity of the roads and highways department and the efficiency, connectivity and safety of the Dhaka-Sylhet international corridor and reduce the travel time between Dhaka and Sylhet by approximately 2 hours.
So far ADB has provided a loan of $26.62 billion and a grant of $1.053 billion.