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Dhaka Tribune

Bangladesh seeks $1.8b loan from IDB

Update : 15 Oct 2015, 07:32 PM

Bangladesh has proposed Islamic Development Bank (IDB) to provide $1.8 billion for implementing 24 development projects related to power, rural development, agriculture, health and education.

Under the second Member Country Partnership Strategy (MCPS), the government has made the proposal to implement the project from 2017 to 2019, according to officials at the Economic Relations Division (ERD).

To finalise the deal, a five-member team, led by the Director of IDB Country Programmes Department, Mohammad Jamal Al-Saati, is expected to pay a three-day visit to Dhaka from October 19.

During the visit, the proposed projects and ongoing 13 projects under the IDB support will come up in the discussion with implementing ministries and agencies concerned.

Moreover, the development of Narayanganj City Corporation will also be included in the discussion.

The deal will help implement Public Private Partnership (PPP) projects and lend funds to private sector for improving the country’s infrastructure, said an official.

He said the funds will come in the form of mixed credit, as some of the loans will be soft in nature and others relatively hard.

Usually, IDB gives loan at less than 2% interest rate with a seven-year grace period and loan payment period is 25 years.

Under the first MCPS 2013-16, IDB had signed an agreement to give $1.2 billion to execute 22 projects, but so far, it approved $451 million against five projects. 

Besides, IDB promised to give $2.2 million for Ashuganj (east) Power Plant as part of its support for the development programme in Bangladesh.

Currently, Bangladesh is implementing 13 projects worth $873.93 million under the bank loan.

The projects include power grid expansion, regional submarine telecommunication, capacity enchantment of Sylhet Power Plant, vocational education and improving water supply situation in the city corporation areas. 

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