Dhaka, Bangladesh (BBN) - Facilitating Private- Public partnership (PPP) is an important step in reducing investment gap for infrastructure in Bangladesh, the World Bank said on Monday.
The World Bank is supporting the Government of Bangladesh for infrastructure development and diversification by private sector participation through the Investment Promotion and Financing Facility (IPFF) Project.
The project also helps to build the capacity of the local financial sector for longer term financing to the much needed private-public partnership ventures in infrastructure.
The participating financial institutions have submitted two loan applications to IPFF Cell at Bangladesh Bank for consideration.
The review of the first proposal, a Central Effluent Treatment Plant (CETP) at Chittagong EPZ is almost at the final stage. The ongoing IPFF project had also earlier financed a water treatment plant, first of this kind in Bangladesh. The World Bank is also reviewing the other proposal of a 50 MW power plant at Patenga, Chittagong.
With support from IPFF, the PPP Office, in collaboration with Board of Investment and Bangladesh Bank had organized a high level international conference to attract foreign investors. The project also provided technical assistance for launching three feasibility studies in Health and Port sector.
In order to accelerate the pace of implementation, the World Bank and the Government of Bangladesh recently decided to restructure by project. The restructured project can now also finance ventures from health, education and information communication technology (ICT).
The IPFF will provide technical assistance from the start of the ventures to ensure quality and efficiency - in terms of technical standards and pricing at the beneficiary stage - in the delivery of important public good and public service.
The World Bank has scaled up its support to the original $ 50 million IPFF project and committed further $257 million for the project. $247 million is allocated for on-lending to participating financial institutions while $10 million is allocated for providing technical assistance for strengthening PPP framework and supporting the PPP Office for preparation of infrastructure sub-projects in different sectors.
BBN/SSR/AD-01Apr13-12:40 pm (BST)
