Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has started Investment Promotion and Financing Facility (IPFF-II) project with over US$400 million disbursement target for infrastructure development in nine key sectors.
An official list of the sectors eligible for drawing the funds includes ports, power, environment, industrial estates and water supply.
Meanwhile, the Bangladesh Bank (BB), the country’s central bank, has sought applications from interested scheduled banks and non-banking financial institutions (NBFIs) for selection of participating financial institutions (PFIs) in the IPEF-II project.
“Scheduled commercial banks in private sector and financial institutions that meet the eligibility criteria and intends to avail financial facility may apply to the project director of IPFF-II project preferably by April 19, 2018,” the BB said in a circular on Tuesday.
The central bank will disburse the re-financing fund through the selected PFIs within five years, according to a senior BB official.
Total size of fund is $416.07 million, provided jointly by the World Bank and the government, he said, adding that of the fund, $13 million has been included as technical assistant.
A financing agreement was signed by the government with the International Development Association (IDA), a lending arm of the World Bank, on November 05, 2017 to carry out the IPFF-II project with a view to increasing long-term financing for infrastructure building.
The central bank of Bangladesh is implementing the IPFF-II project under the Finance Division of the Ministry of Finance, providing fund for financing PPP (Public-Private Participation) ventures in a wide range of infrastructure sectors.
The predecessor project, IPFF financed 11 small power plants that together generate over 550 MW electricity, three water treatment plants, an inland container depot, a fiber-optic cable network, and a dry dock.