$100m addl ADB fund for Dhaka bypass project

The Asian Development Bank (ADB) will provide a US$100-million loan to support Bangladesh's infrastructure development through a public-private partnerships (PPP) model.

The board of the Manila-based lender approved the loan for the Bangladesh Infrastructure Finance Fund Limited (BIFFL), a government-owned specialised finance company, to fund the Dhaka Bypass road project, which is currently under construction.

An official from the Economic Relations Division (ERD) mentioned that the ERD will sign the loan deal shortly to secure its disbursement.

The $100 million loan will be additional financing from the ADB to the BIFFL to facilitate the Dhaka bypass road project, the official stated.

"This project will enable Bangladesh to catalyse private sector financing, reduce pressure on public finance to address infrastructure 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 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, he added.

In a press release, ADB stated that Bangladesh is undergoing a transformative phase, driven by economic shifts and recent political transitions.

The country's infrastructure development, primarily driven by the public sector, faces challenges due to limited resources and implementation constraints.

A key hurdle in infrastructure investment is the shortage of long-term debt funding in the local market.

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