ADB to fund $1.5 billion for Bangladesh-Myanmar railways

Dhaka: The Asian Development Bank (ADB) will fund $1.5 billion for building a rail line that will connect Cox`s Bazaar, Bangladesh`s beach resort, to neighbouring Myanmar as part of a larger Trans-Asian Railway network.

Bangladeshi Prime Minister Sheikh Hasina in 2011 opened construction work on the rail line but it has been on hold due to lack of funds, Xinhua reported.

"The ADB has been prioritising Bangladesh`s policy for development through regional connectivity," the country`s Economic Relations Division (ERD) Joint Secretary Saifuddin Ahmed said in a report on Friday.

"The project under Trans-Asian Railway corridor will set up rail links with Myanmar. The ADB wants to fund it because of its tremendous prospect," he said.

Some 100 km of rail lines will connect Bangladesh with Myanmar through Ghumdhum border.

"We`ve had two meetings with the ADB mission on this project. The ADB has agreed to give $1.5 billion in loan at two percent interest."

Bangladesh has a 300 km-border with Myanmar and the country expects to connect by road and rail with Kunming in China through Myanmar.