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$400m up for grabs for key infrastructure dev

BB invites application for fund disbursement under IPFF-II project

Siddique Islam | March 14, 2018 00:00:00

The central bank has undertaken Investment Promotion and Financing Facility (IPFF-II) project with over US$400 million disbursement target for infrastructure development in nine key sectors.

An official list of the sectors eligible for drawing the funds includes ports, power, environment, industrial estates and water supply.

In the meantime, the Bangladesh Bank (BB) has sought applications from interested scheduled banks and non-banking financial institutions (NBFIs) for selection of participating financial institutions (PFIs) in the IPFF-II project.

"Scheduled commercial banks in private sector and financial institutions that meet the eligibility criteria and intend to avail financial facility may apply to the project director of IPFF-II project preferably by April 19, 2018," the BB said in a notification Tuesday.

Talking to the FE, a senior official of the BB said the central bank will disburse the re-financing fund through the selected PFIs within five years.

He also said total size of fund is $416.70 million, provided jointly by the World Bank and the government.

Of the fund, $13 million has been included as technical assistant, the BB official added.

A financing agreement was signed by the government with the International Development Association (IDA), concessionary lending arm of the World Bank, on November 05, 2017 to carry out the IPFF-II project with a view to increasing long-term financing for infrastructure building.

The central bank of Bangladesh is implementing the IPFF-II project under the Finance Division of the Ministry of Finance, handing out funds for financing PPP (Public-Private Participation) ventures in a wide range of infrastructure sectors.

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