The World Bank Saturday assured Bangladesh of its help to mobilise increased foreign direct investment (FDI) in the field of energy, particularly the power sector, as the government and the donor agency considered that FDI would be effective for the sector's development, reports UNB.
The assurance was given during a meeting between Finance Minister AMA Muhith and visiting World Bank Vice President for South Asia Region Isabel M. Guerrero at the Finance Ministry.
Guerrero arrived in Dhaka Saturday afternoon on a 3-day visit to Bangladesh to discuss with the policymakers the global financial crisis and its impact on Bangladesh.
"We need huge FDI for energy sector. They can assist us in getting the FDI," Muhith told reporters after the meeting. "They can help stimulate the flow of private fund. The terms of private fund is now easy as the interest rate came down."
Asked whether the government would be able to keep up its commitment to end the power crisis, he said: "We'll have to do it. We'll be able to do it."
The minister apprised the Bank's senior executive that Bangladesh might be able to overcome the impact of the global financial meltdown during this fiscal year, but what would happen in the next fiscal year is a matter of concern.
He sought increased budgetary support from the World Bank to intensify social safety net programmes to safeguard the poor people of the country from the fallout of the recession.
He also pointed out the need for increased investment in energy, power, infrastructure and agriculture training.
"Certainly, we want to step up our support to Bangladesh," World Bank country director Xian Zhu told reporters after the meeting. Guerrero rushed out from the ministry for another urgent appointment.
Zhu said FDI would be effective in infrastructure development like energy and power sector.
He said during the meeting between the minister and the World Bank Vice President, they discussed a wide range of issues like the eventual possible impact of recession on Bangladesh and how the country could prepare to face the impact.
He said the minister stressed the need for increased project and budgetary support for social safety net programmes, infrastructure and agriculture sectors.
He said the government would prepare a document for budget support and forward it to the World Bank for consideration. "We'll follow it up," he added.
During the 3-day visit, Guerrero would meet senior government officials, civil society members and the private sector leaders to discuss how the World Bank group could best assist Bangladesh.
