The Asian Development Bank (ADB) and the Bangladeshi government Thursday signed a loan agreement of 150million U.S. dollars to finance the country's good governance program.
Aminul Islam Bhuiyan, secretary of Economic Relations Division under Finance Ministry, and Du Hua, country representative of ADB signed the agreement on behalf of their respective parts.
The good governance program seeks to support the Bangladeshi government to strengthen the ongoing consensus building on good governance, integrity and anti-corruption reforms; support judicial reforms with a focus on the performance, transparency and accountability of the judiciary, particularly on its role in the anti-corruption agenda.
The result will be a set of long-term policy reforms in good governance, particularly those related to instituting good practices in combating corruption.
Du Hua said at the signing ceremony the good governance program is reflecting the government's stand on developing major reforms to address corruption.
"According to surveys conducted by various organizations, corruption adversely impacts not only the economy at the macro level but also individuals and households at the micro level," she said.
She said the program will help the government to implement and institutionalize important policies, systems and procedures and to sustain the good governance reforms.
The total estimated costs of policy reforms under the good governance program are 170 million U.S. dollars. Out of this, the ADB will provide 150 million dollars from its concessional (Asian Development Fund) loan window as a budgetary support. The remaining costs is expected to come from the support provided by other development partners and the Bangladeshi government.
The loan will be released by ADB in three tranches upon meeting the corresponding tranche release conditions. The amount of first, second and third tranches are 50 million dollars, 55 million dollars and 45 million dollars respectively.
ADB, 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.
ADB is one of the largest multilateral development partners of Bangladesh extending assistance to the country since it became a member of ADB in 1973. ADB's total loan to Bangladesh till now is 8.76 billion U.S. dollars. The development assistance of ADB in Bangladesh mainly focus on power, energy, local government, communications and transport, education, agriculture, water resources and governance sectors.