The Asian Development Bank (ADB) and Bangladesh government today signed a €360 million ($400 million) loan agreement to help upgrade the Dhaka-Northwest international trade corridor in Bangladesh.

"This project is part of a priority international transport corridor that connects Bangladesh with Bhutan, India and Nepal," said ADB Country Director Manmohan Parkash.

Fatima Yasmin, secretary of Economic Relations Division (ERD), and Manmohan Parkash signed the agreement on behalf of Bangladesh and ADB respectively, at a programme in Dhaka.

The project will contribute to achieving Bangladesh's goal of an efficient and modern transport system by constructing four-lane 190km section from Elenga through Hatikumrul to Rangpur.

Prakash also said the project will further strengthen regional connectivity, and boost trade along the second busiest road artery in the country. "When completed, it will reduce transport costs, travel time, vehicle emission, congestion and accidents," Parkash added.