Today, the Asian projects Bank (ADB) authorised an extra loan of US$100 million to help Bangladesh’s public-private partnerships (PPP) fund vital infrastructure projects.
“This project will enable Bangladesh to catalyze private sector financing, reduce pressure on public finance to address infrastructural development deficits, and create more employment,” said ADB Country Director for Bangladesh Hoe Yun Jeong.
“The loan will enhance the financial and institutional capacity of the Bangladesh Infrastructure Finance Fund Limited (BIFFL) to deliver its mandate of fostering an environment that supports sustainable private investments through the mobilization of PPP, with a strong focus on gender and climate change,” Yun added.
Economic changes and a recent political upheaval are driving Bangladesh through a transitional moment. According to an ADB press release, the nation’s infrastructure development, which is mostly spearheaded by the public sector, is beset by execution issues and a lack of funding.
The lack of long-term debt capital available in the local market is a major barrier to infrastructure investment.
By giving BIFFL long-term funding, the ADB loan seeks to close this gap and enable the completion of vital infrastructure projects that will promote economic expansion.
Through the Strengthening Bangladesh Infrastructure Finance Fund Limited Project-Additional Financing, BIFFL will be better equipped to attract private sector funding and support emerging technologies from foreign direct investors and international sponsors.
BIFFL will create a gender equality and social inclusion strategy and implement gender screening for sub-projects with ADB’s assistance.
While continuing its efforts to end extreme poverty, ADB is dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
It was founded in 1966 and has 69 members, 49 of whom are local.
