OREANDA-NEWS. February 11, 2015. The Asian Development Bank (ADB) and the Government of Myanmar today signed an \\$80 million loan agreement to rehabilitate a major road to support economic development in the agriculturally rich but underdeveloped Ayeyarwaddy Delta.

The loan agreement to upgrade the Maubin-Phyapon road was signed by U Maung Maung Win, Director General, Treasury Department of the Ministry of Finance, and Winfried Wicklein, ADB Country Director for Myanmar. U Kyaw Lin, Managing Director, Public Works of the Ministry of Construction, and other senior officials from the government ministries, as well as ADB officials witnessed the signing.

“The rehabilitation of the road will improve connectivity and reduce travel times in the delta and we believe it will have a high impact on the development of the region,” said Mr. Lin.

Under investment in road maintenance in past decades and the devastation caused by Cyclone Nargis in 2008, has left the road network in the delta in poor condition, undermining economic and social development. Upgrading the network is now a high priority.

“Cash crops and the production of high value seafood in the delta are not yet viable industries as the poor condition of the existing road network makes it difficult for products to reach markets,” said Mr. Wicklein. “Rehabilitation of this road will improve access to markets and help the otherwise productive agricultural areas of the delta realize their full economic potential.”

The loan will also provide training and other capacity building support to the Ministry of Construction to strengthen its project development capabilities. This will include upgrading the Yangon Road Research Laboratory with the purchase of new equipment.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.