Sharifa Khan, secretary of Bangladesh's Economic Relations Division, and Jiangbo Ning, ADB deputy country director for Bangladesh, signed the agreement on behalf of their respective sides in Dhaka.
The loan will help complete the construction of the 102 km of the new railway line between Chattogram and Cox's Bazar, one of the world's longest unbroken sandy beaches, about 400 km southeast of Dhaka.
The assistance forms the third part of 1.5 billion dollars in ADB loans for the SASEC (South Asia Subregional Economic Cooperation) Chattogram-Cox's Bazar Railway Project.
"The ADB is assisting the government to shift from road to rail, which is a climate-friendly, safe, affordable, and efficient mode of transport," said Ning.
"The project is a priority investment and will open up the unserved areas of Cox's Bazar region by promoting investment, trade and tourism," the deputy country director said, adding that the project also integrates features that are friendly to the elderly, women, children, and people with disabilities.
The new rail link, expected to open in 2023, aims to transport 2.9 million passengers annually between Chattogram and Cox's Bazar by 2024.
The construction of this railway section is one of several ADB railway projects to help Bangladesh meet its targets under its Eighth Five-Year Plan and Railway Master Plan.
Chattogram-Cox's Bazar Railway is part of the Trans-Asia Railway network, an initiative led by the United Nations, aiming to provide seamless rail links between Asia and Europe to better connect people and markets.
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