Bangladesh is to get almost $700m (�439m) in development and technical assistance to help alleviate poverty and encourage economic growth.

The aid will come from the Asian Development Bank (ADB).

At a news conference in Bangladesh, ADB country director Toru Shibuichi told reporters that Bangladesh was facing challenging targets for poverty reduction.

To fulfil them, economic growth would need to reach 7-8%, Mr Shibuichi said. Bangladesh has averaged 5% growth over the past decade.

The need to accelerate the economy from the 5.4% growth expected in 2002-3 has led to assistance from the ADB more than doubling from $330m in 2002.

Pluses and minuses

Although growth still needs to pick up, in other ways the ADB said it was well satisfied with the country's progress.

Mr Shibuichi said: "Inflation is in single digits and domestic and external demand are both on the up.

"This year's agriculture output will help boost output so long as favourable weather continues."

Critics, though, fear that the potential for agricultural exports remains limited so long as Europe, Japan and the US continue heavy farming subsidies and tariffs.

And the ADB noted that "infrastructure bottlenecks" were getting in the way of development.

The bulk of the 2003 money, $560m, will go on five lending programmes focusing on education, livestock, electricity, natural gas and road communications.

Most of the remainder is earmarked for two projects relating to business development and flood protection schemes, with the rest devoted to technical assistance.