The Asian Development Bank (ADB) today approved a US$100 million loan in additional financing to support critical infrastructural development through public-private partnerships (PPP) in Bangladesh. Report BSS
"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.
Bangladesh is undergoing a transformative phase, driven by economic shifts and recent political transition. The country's infrastructure development, primarily driven by the public sector, faces challenges due to limited resources and implementation constraints, said an ADB press release.
A key hurdle in infrastructure investment is the shortage of long-term debt funding in the local market.
The ADB loan aims to address this gap by providing long-term financing to BIFFL, facilitating the completion of critical infrastructure projects that will foster economic growth.
The Strengthening Bangladesh Infrastructure Finance Fund Limited Project - Additional Financing will strengthen BIFFL's capacity to crowd in private sector financing and facilitate new technologies brought by international sponsors and foreign direct investors.
With ADB's support, BIFFL will establish gender screening of sub-project and develop a gender equality and social inclusion strategy.
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 69 members- 49 from the region.
