The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday signed agreements for $278.29 million in loans to provide long-term financing and catalyze private sector financing for infrastructure development, reducing pressures on public finance and enhancing value for money.
Sharifa Khan, Secretary of the Economic Relations Division and Jiangbo Ning, Deputy Country Director of ADB signed the agreements on behalf of Bangladesh and ADB, respectively, reads a press release.
The assistance under the second tranche of the Third Public-Private Infrastructure Development Facility (PPIDF-3) will support investment in smaller energy efficiency, renewable energy solutions and social infrastructure projects.
“The assistance will increase the availability of long-term debt financing, and catalyze take-out financing for infrastructure projects,” Deputy Country Director Jiangbo Ning said.
“I am hopeful that the project will significantly promote public-private partnership (PPP) by implementing a wide range of projects in renewable energy, transport, education, telecommunications, economic zone development, and energy efficiency in the manufacturing industry, as identified by the Infrastructure Development Company Ltd,” Ning added.
The PPIDF-3 is a continuation of the Public-Private Infrastructure Development Facility and the Second Public-Private Infrastructure Development Facility addressing the infrastructure deficiencies in Bangladesh.
The PPIDF-3 will help catalyze commercial financing through IDCOL-supported infrastructure subprojects with the value addition of supporting private sector development.
The project also seeks to strengthen the institutional capacity of IDCOL to fulfil its mission as a flagship financial institution supporting PPP finance in the infrastructure sector. Tranche 1 has made great progress on these fronts, supporting eight infrastructure subprojects and two renewable and energy efficiency subprojects and catalyzing $457 million in private sector investments.
Tranche 2 will continue to fund at least five infrastructure subprojects and two subprojects in the renewable energy and energy efficiency areas amounting to $278.29 million.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region.
