The World Bank will provide a $300m loan to the Local Government and Engineering Department (LGED) of Bangladesh to carry out a project under the Rural Transport Improvement-II (RTIP-II) project next year.

The loan will help develop an innovative road building practice in the country.

Under the new practice, the chosen contractor will have to carry out maintenance work for five years following the completion of the project.

Under the terms, the contractor will be required to repair potholes and cracks on the road projects within 24 to 72 hours of the reporting otherwise part of the payment will be deducted, according to

Under previous practice, contractors usually build and maintain the project for year.

Bangladesh is planning to implement new projects under the new practice in ten districts of RTIP-II project area to maintain 450km of road.