DHAKA, May 23 (Xinhua) -- The Asian Development Bank (ADB) and the government of Bangladesh Thursday signed an agreement for 400 million U.S. dollars in loan to help build a dual-gauge railway to promote trade, investment and tourism in Bangladesh.

Monowar Ahmed, secretary of Bangladesh's Economic Relations Division (ERD), and Manmohan Parkash, country director of ADB, signed the agreement on behalf of Bangladesh and ADB, respectively, at a ceremony in Dhaka.

According to the ADB, the assistance forms the second part of 1.5- billion-U.S. dollar ADB loans for the Chattogram-Cox's Bazar Railway Project in South eastern Bangladesh.

The loan will finance around 27 percent of the progress towards constructing 102 km of new railway line between Chattogram and Cox's Bazar.

"ADB is committed to help Bangladesh develop its railways, which is a safe, affordable and environment-friendly mode of transport," said the bank's country director.

"The project is a priority investment under Bangladesh's Seventh Five Year Plan and will open up the unserved areas of Cox's Bazar region by promoting investment, trade and tourism."

"The project also integrates features that are friendly to the elderly, women, children, and people with disabilities," Parkash added.

The new rail link, which opens in 2023, aims to transport 2.9 million passengers annually between Chattogram and Cox's Bazar by 2024, said the bank.

It said the construction of this railway section is one of several ADB railway projects to help Bangladesh meet its targets under its Seventh Five-Year Plan and Railway Master Plan.