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Govt, ADB ink $260m deal for infrastructure development

November 20, 2017 00:00:00

The Asian Development Bank (ADB) and the government of Bangladesh on signed agreements on Sunday for $260 million in loans to help sustain and increase infrastructure investments in Bangladesh as well as renewable energy interventions, reports UNB.

Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Manmohan Parkash, newly appointed Country Director, ADB, signed the loan agreements Sunday afternoon on behalf of their respective sides at a ceremony at the ERD Conference Room in the city.

The assistance forms the first tranche of $526 million multitranche ADB loans for the Third Public-Private Infrastructure Development Facility (PPIDF 3).

The support consists of a $500 million market-based loan to finance medium and large-scale PPP infrastructure projects, and a $26 million concessional loan to finance small and medium-sized renewable energy and energy efficiency facilities, primarily in the rural areas of the country.

The programme will also be supported by a $750,000 technical assistance to further strengthen the capacity of the IDCOL. PPIDF 3 is a continuation of the previous efforts of ADB, Government of Bangladesh and Infrastructure Development Company Ltd (IDCOL) to address the country's infrastructure deficiencies. The project builds on ADB's support leading to the enactment of the PPP Act and institutional support to the PPP Authority.

"The PPIDF 3 seeks to increase investments in infrastructure, including renewable energy and energy efficiency facilities, aligned with Bangladesh's Seventh Five Year Plan, FY2016- FY2020," said Country Director Manmohan Parkash after signing the loan agreement. ADB new Country Director Manmohan Parkash also said that for ADB, Bangladesh is one of the most important clients and ADB is looking forward to forge more more effective partnership and cooperation with Bangladesh.

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