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EC Signs Financing Agreement with GoB to Fund Pilot Investment
Project for Rural Towns Development
Press Release
Dhaka, 22 December 2003
Dhaka: The
Delegation of the European Commission to Bangladesh has signed a Financing
Agreement with the Government of the People's Republic of Bangladesh to fund a
Pilot Investment Project for Rural Towns Development. The project will be
implemented in 12 rural towns encompassing all six divisions of Bangladesh.
Mr. Mirza Tasadduq Hussain Beg, Secretary,
Economic Relations Division, Ministry of Finance and Mr. Esko Kentrschynskyj,
Ambassador and Head of Delegation of the European Commission to Bangladesh
signed the Financing Agreement on 22 December 2003.
The Local Government Engineering Department (LGED) of the
Ministry of Local Government, Rural Development and Cooperatives will implement
the project which has a duration of three years.
The European Commission in partnership with the Government of
Bangladesh looks forward to supporting this important pilot project which is
expected to contribute to an improved economic, social and demographic balance
in the urbanization process. The total cost of the project is estimated to be
12.5 million euro (approx. US$ 15 million) of which EC's contribution (EC
grant) will be 10 million euro (approx. US$ 12 million).
The Project is based on a study on rural towns' development
in Bangladesh. This study, which has been thoroughly discussed with the relevant
Government authorities, proposes that a mixed effort of improved support to
small businesses and to the municipal services and regional planning systems
will encourage increased economic activity in the rural areas, as well as create
higher employment and therefore stem the very large exodus of people. The main
purpose of the Project is to implement this approach in 12 rural towns agreed
with the Government.
For more information please contact
Anjum Aziz
Media and Communication Officer
Tel: 8824730 (Ext- 116)
Delegation of the European Commission to Bangladesh
House 7, Road 84
Dhaka 1212
Bangladesh
delegation-bangladesh@ec.europa.eu
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