The Asian Development Bank (ADB) has approved a $50 million loan to the Government of Bangladesh to fund public-private partnership (PPP) infrastructure projects in the country.
The loan will help implement PPP energy, transportation and urban infrastructure projects developed by government agencies.
The demand for energy, transportation, and urban infrastructure development projects has increased in Bangladesh following the country recording economic growth in recent decades.
The country’s gross domestic product grew by an average 7% per year.
The loan will strengthen the capacity of the Bangladesh Infrastructure Finance Fund Limited (BIFFL), which was established by the government to provide long-term local-currency debt financing to infrastructure projects.
In addition to the loan, 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.
BIFFL will use the grant to assess and improve capacity to manage environmental and social safeguards and project implementation.
ADB principal financial sector specialist Dongdong Zhang, adds: “The assistance will help strengthen government capacity to develop PPP infrastructure projects and catalyze greater private sector infrastructure investments.
“As the country starts to recover from the severe impacts of the coronavirus disease (COVID-19) pandemic, PPP will emerge as an important tool to leverage private sector resources to develop infrastructure and create jobs.”