The Asian Development Bank will provide Bangladesh 225 million U.S. dollars in loans to help it expand natural gas infrastructure and delivery system in the country.

The signing ceremony for Gas Transmission and Development Project (GTDP) was held in Dhaka Sunday.

Under the project, four gas transmission pipelines will be constructed, totaling 353 kilometers to transport about 360 million cubic feet of natural gas per day to the less developed western region of the country, covering an area with a population of nearly 15 million.

The total cost of the project is estimated at 413 million dollars. In which, 225 million dollars will be provided by ADB on loans, 5 million dollars will be provided by the Norwegian government in grant, and the rest will be provided by the Bangladeshi government.

ADB Country Representative Du Hua said at the ceremony that the project will provide the people from the western part of the country with clean energy for the first time.

Studies show that Bangladesh has adequate gas reserves to meet its requirements. The country's gas infrastructure, however, is in poor condition due to a lack of commercial orientation and inadequate funding for maintenance and expansion. Low utilization of natural gas constrained commercial, industrial and rural development.

Based on an ADB-financed study, Petrobangla, the Bangladesh Oil, Gas and Minerals Corporation, had formulated an investment plan for the period 2002-2020 that envisages 3 billion dollars in investments for the gas sector to meet the country's increasing gas requirements.

ABD, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development and good governance.

Established in 1966, ADB has 65 members, 47 from the region. In 2005, it approved loans and grants for projects totaling 6.95 billion dollars, and technical assistance amounting to 198.8 million dollars.

Source: Xinhua