Dhaka, July 23, 2017 (PR) - Infrastructure Development Company Limited (IDCOL), a government owned development financial institution involved in private sector energy and infrastructure financing in Bangladesh, has recently obtained approval for its third credit line from the Asian Development Bank (ADB). The credit line, known as Third Public-Private Infrastructure Development Facility (PPIDF 3), will be used for financing the development of private sector infrastructure projects currently envisaged under the Seventh Five Year Plan of the Government of Bangladesh (GOB).
Under PPIDF 3 facility, ADB will provide USD 500 million market-based loan and USD 26 million concessional loan to IDCOL for on lending to eligible private sector infrastructure projects and a technical assistance of USD 750,000 for further strengthening the capacity of IDCOL. Notably, IDCOL previously availed two credit lines from ADB - USD 165 million under PPIDF 1 and USD 110 million under PPIDF 2. 6 (six) projects from the power sector with an aggregate capacity of 750 MW+ and the first private sector river port in Bangladesh have so far been financed using the credit facilities. To further boost up private sector participation and complement the GOB’s vision to become a middle income country by 2021, IDCOL targets to invest additional USD 1 billion by 2020 in the infrastructure sector of Bangladesh.
For the PPIDF 3 facility, the Economic Relations Division (ERD) and Finance Division (FD) of the Ministry of Finance will act as Executing Agency and Financial Management Agency, respectively, while IDCOL will act as the Implementing Agency. The loan negotiation for the facility has already been completed and the loan is expected to be effective in the last quarter of 2017.
