Contacts: In Dhaka: S.M.Rezwan-ul-Alam, (880-2) 815 9001 Ext. 4242 In Washington: Erik Nora, (202) 458 4735 enora@worldbank.org WASHINGTON, October 19, 2006 ─ As part of a multi-donor, multi-year investment program of up to US$ 700-800 million, the World Bank today approved a US$40 million credit to support the Government’s plans to transform Bangladesh Railway into a well-managed, customer-focused organization. The Bangladesh Railway Reform Programmatic Development Policy Credit is the World Bank’s first major development policy credit support in the railway sector. It is part of a long-term strategic partnership between the Government, the World Bank, Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC), to help meet the transport needs of Bangladesh’s growing economy. Adequate infrastructure is critical to the continued growth prospects of Bangladesh. The project supports Government efforts to make institutional and governance improvements in Bangladesh Railways, as well as to improve financial management and human resource management, and to increase operational efficiency. A restructuring process has already begun which will lead to improved services, performance oriented management and enhanced maintenance over the medium term. Christine Wallich, World Bank Country Director for Bangladesh said: “This US$ 40 million development support credit is one of the flagship operations planned to be developed with our Country Assistance Strategy partners - ADB and JBIC. It will play a catalytic role for ensuring the success of the reform program by coordinating with all donors and the wider government ministries and agencies.” The project will be followed by another proposed development policy credit of US$60 million for the Railway Reform Program in 2009. An additional US$200 million credit is also envisaged in 2009 to support another Government initiative to improve infrastructure and network expansion of railways. Binyam Reja, World Bank Senior Transport Economist and project team leader said: “The Bangladesh Railway Reform Program will help create an environment conducive for expanded investment in the railway sector by the government and donors, improve railway operations, and increasethe use of the railway system.” The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent. # # # For more information on the Bank’s work in Bangladesh, please visit http://www.worldbank.org.bd |
RSS