ADB provides Bangladesh $50m in loan for infrastructure projects

The Asian Development Bank or ADB has agreed to provide $50 million in loan to Bangladesh to promote, fund and implement public-private partnership (PPP) infrastructure projects in the country.

Fatima Yasmin, the secretary to the Economic Relations Division, and Manmohan Parkash, ADB's country director, virtually signed the loan agreement on Thursday. SM Anisuzzaman, CEO of Bangladesh Infrastructure Finance Fund Limited (BIFFL), signed the project agreement.

“The project will strengthen BIFFL’s capacity to mobilize private investments, develop infrastructure projects, and create jobs, which will accelerate the economic recovery process after the coronavirus disease (COVID-19) pandemic,” said 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 catalysing greater private sector commercial infrastructure financing and investment, the project will also help the rollout of the government’s PPP strategy,” he 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.

The Manila-based lender has been a long-standing partner in supporting 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, it said in a statement.

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 environmental and social safeguards, and project implementation.