Dhaka, Bangladesh (BBN)– The Asian Development Bank (ADB) and the Government of Bangladesh has signed agreements for $260 million in loans to help sustain and increase infrastructure investments in Bangladesh, particularly in financing public-private partnership (PPP) projects as well as renewable energy interventions.
Kazi Shofiqul Azam, Secretary, Economic Relations Division (ERD), and Manmohan Parkash, Country Director, ADB, signed the loan agreements on behalf of Bangladesh and ADB, respectively, at a ceremony in Dhaka on Sunday.
The assistance forms the first tranche of $526 million multitranche ADB loans for the Third Public-Private Infrastructure Development Facility (PPIDF 3).
The support consists of a $500 million market-based loan to finance medium and large-scale PPP infrastructure projects, and a $26 million concessional loan to finance small and medium-sized renewable energy and energy efficiency facilities, primarily in the rural areas of the country.
“The PPIDF 3 seeks to increase investments in infrastructure, including renewable energy and energy efficiency facilities, aligned with Bangladesh’s Seventh Five Year Plan, FY2016– FY2020,” said Country Director Manmohan Parkash.
“It will also help leverage private sector investments in PPP projects to reduce pressure on direct financing from the public budget to meet the growth target”.
The programme will also be supported by a $750,000 technical assistance to further strengthen the capacity of the IDCOL.
PPIDF 3 is a continuation of the previous efforts of ADB, Government of Bangladesh and Infrastructure Development Company Ltd (IDCOL) to address the country’s infrastructure deficiencies.
The project builds on ADB’s support leading to the enactment of the PPP Act and institutional support to the PPP Authority.