WB to provide 40 mln dollars credit for modernizing Bangladesh Railway

The Bangladeshi government and the World Bank (WB) completed negotiations recently for a 40 million U. S. dollars credit for Bangladesh Railway as part of an investment program of up to 700-800 million U.S. dollars, local newspaper The Financial Express reported Saturday.

The credit is designed to support the government's plans to transform Bangladesh Railway into a well-managed, customer-focused organization. It is the WB's first major development policy credit support for the railway sector.

The credit of 40 million dollars, which would be considered by the board of WB on Oct. 19, is scheduled to be followed by a similar credit of 60 million dollars for the Railway Reform Program in 2009, said a WB release Friday quoted by the newspaper.

The WB also forecasts an additional 200 million dollars to support another government initiative that aims to improve infrastructure and network expansion of the railways in 2009.

The National Strategy for Accelerated Poverty Reduction notes that the railway system could be improved to better meet the transport needs of the country's growing economy.

In close coordination with the WB, Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC) have also joined in a multi-year, multi-donor partnership with the government.

WB Country Director Christine Wallich said, "The donor- supported investment program is based on the government's own medium-term transport sector investment program. It will support reforms to improve Bangladesh Railway's organizational structure and management practices, along with a revamped policy environment for railways."

Source: Xinhua