The finance minister has expressed confidence that this month’s placing of the Asian Infrastructure Investment Bank bill before parliament will smooth the path to authorise membership of AIIB.
It is vital that Bangladesh progresses plans to join the new multilateral institution, which were delayed ahead of January’s formal launch in Beijing due to the government’s failure to complete necessary formalities.
With the government now considering plans for a Tk70,000 crore public-private partnership to construct an elevated expressway over the Dhaka-Chittagong four-lane highway, it is more important than ever to increase the total potential finance available to support new infrastructure projects.
According to the World Bank, Bangladesh needs to invest over $74bn in the coming decade to bring power grids, railways, roads, and water supplies up to global standards. To achieve this, infrastructure investment will need to increase significantly from the current level of around 3%.
New funding sources for major infrastructure projects are essential to help Bangladesh improve the inadequate and outdated infrastructure which acts as a barrier to economic development.
The AIIB’s goal of raising $100bn for infrastructure projects across Asia is important for Bangladesh, as it will directly stimulate regional growth and create more global funding for major projects.
Joining the AIIB will help Bangladesh attract the new investment for infrastructure improvement which our economy needs to improve competitiveness.
Long-term investment to plug gaps in infrastructure is vital to help the goal of becoming a middle-income country and create new high value jobs.
Improving infrastructure is key to enabling the economy to attract and sustain the virtuous cycle of new investment it needs to sustain growth and fulfill its full potential.