Dhaka: The government signed a $50 million loan agreement with the Asian Development Bank (ADB) on Sunday for improving the safety of the railway sector and its development, reports UNB.

Senior Secretary of Economic Relations Division (ERD) Mohammad Mejbahuddin and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission of ADB, signed the deal on behalf of Bangladesh and ADB respectively at a ceremony at ERD at Sher-e-Bangla Nagar in Dhaka.

The assistance is the fourth tranche of the $430 million multi-tranche of financing facility agreed between Bangladesh and ADB in 2006 to improve the railway system across the country through the Railway Sector Investment Programme.

Under the programme, the ADB has already provided $130 million, $150 million and $100 million as first, second and third tranches respectively for double-tracking the Tongi-Bhairab Bazar Railway section, purchasing of 150 new passenger carriages, implementing reforms, rehabilitating yards, extending loops, and upgrading signaling.

The fourth tranche of $50 million will help complete the double-tracking of the 64-km Tongi-Bhairab Bazar railway section, rehabilitate yards and extend loops at 11 stations in the Darsana-Ishurdi-Sirajganj Bazar section, and improve signaling in the 78 km Darsana-Ishurdi section.

​The Railway Sector Investment Programme will support Bangladesh Railway for faster and more frequent services between Dhaka and Chittagong.