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Search date: 25-06-2019 Return to current date: Click here

SDF keen to explore co-financing of road connectivity projects

FE Report | June 25, 2019 00:00:00

SAARC Development Fund (SDF) is keen to explore co-financing of some road connectivity projects including mass rapid transit line-6.

SDF has also requested the government to nominate banks for availing its micro, small and medium enterprise (MSME) funding scheme in Bangladesh aimed at encouraging and boosting the trade sector in the country, an official said.

Under the MSME funding programme, a maximum amount of Line of Credit is US$ 10 million per fiscal year (FY).

Dr Sunil Motiwal, Chief Executive Officer of SDF, has recently sent a letter to the finance ministry in this regard.

According to the letter, SAARC member states like Bhutan, Maldives and Nepal have nominated a bank each for availing MSME funding scheme of SDF. Bhutan and Nepal have already submitted their proposal to SDF.

The MSME Funding Scheme was recently approved by SDF Board. As an outreach exercise undertaken, SDF has approached various banks including Agrani Bank Ltd, Bangladesh Development Bank Ltd, Janata Bank, Bangladesh Krishi Bank, BASIC Bank Ltd, Rupali Bank Ltd, Sonali Bank Ltd and Small and Medium Enterprise Foundation.

The parameters of the MSME are to encourage and boost trade among SAARC member states by providing resource support by way of Line of Credit to Financial Intermediaries (FIs) in member countries to lend to MSME units in their respective countries, exporting to other SAARC countries, at a concessional rate of interest, according to SDF.

"SDF understands that work on Mass Rapid Transit (MRT) project MRT Line-6 being executed by Dhaka Mass Transit Company Ltd (DMTCL) has commenced. As funding gap is anticipated in execution of this project, SDF is keen to explore co-financing of MRT line-6 project along with JICA and other lenders," the letter mentioned.

SDF is also exploring co-financing of various road connectivity projects in Bangladesh. The projects are Mymensingh-Kewatkhali Bridge Project, Sylhet-Tarnabil Road Upgrade Project and other cross-border road connectivity projects.

Japan International Cooperation Agency (JICA) is providing loan amounting to nearly US$ 2.10 billion for constructing the MRT-6.

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