The Asian Development Bank (ADB) on Thursday confirmed US$50 million loans to promote, fund, and implement public-private partnership (PPP) infrastructure projects in Bangladesh.
The Manila-based lender signed a loan agreement with the Bangladesh government in this regard today.
Fatima Yasmin, Secretary, Economic Relations Division (ERD), and Manmohan Parkash, Country Director, ADB, virtually signed the loan agreement on behalf of Bangladesh and ADB, respectively. S M Anisuzzaman, Chief Executive Officer of Bangladesh Infrastructure Finance Fund Limited (BIFFL) signed the project agreement.
“The project will strengthen BIFFL’s capacity to mobilise private investments, develop infrastructure projects, and create jobs, which will accelerate the economic recovery process after the coronavirus disease (COVID-19) pandemic,” said Country Director Manmohan Parkash.
“The project will generate about 3,000 jobs in PPP projects supported by BIFFL by 2024 and help implement PPP infrastructure subprojects developed by government agencies.” “In addition to catalyzing greater private sector commercial infrastructure financing and investment, the project will also help the rollout of the government’s PPP strategy,” Mr Parkash added.
Using ADB’s financial intermediary loan, the Strengthening Bangladesh Infrastructure Finance Fund Limited Project will provide long-term local currency financing for qualified PPP infrastructure subprojects. ADB has been a long-standing partner to support BIFFL to promote PPP programme and develop its pipeline of projects. ADB has also assisted the government to develop the PPP Act, set up the PPP office, and an institutional framework for PPPs in addition to supporting priority sectors of Bangladesh as a transaction advisor.
A $650,000 technical assistance grant from ADB’s Financial Sector Development Partnership Special Fund will support BIFFL to review and update its corporate strategy, as well as assess and improve capacity to manage the environmental and social safeguards, and project implementation.
ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members, of which 49 are from the region.