Dhaka seeks pvt sector funds for infrastructure projects
Sunday, 5 October 2008
FE Report
Bangladesh seeks private sector funds to invest in infrastructure projects with the help of a $165 million loan facility to be funded by the Asian Development Bank (ADB).
The Public-Private Infrastructure Development Facility will catalyse private sector investments of up to $600 million to finance 15 to 20 projects, mostly in energy that will add at least 900 megawatts (MW) of power in Bangladesh and provide electricity to about 100,000 more households through the renewable energy programme.
ADB is providing $82 million to help finance large infrastructure projects worth more than $30 million each; $50 million to assist small and medium-sized energy projects with a total project cost size of not more than $30 million each; and $33 million to promote renewable energy.
A $500,000 technical assistance grant will also be provided for training and support.
Bangladesh's public investments in the infrastructure sector have remained stagnant in recent years, accounting for only 6.0 per cent to 7.0 per cent of the gross domestic product.
Currently, only 60 per cent of urban households and 22 per cent of rural households have electricity connections.
Bangladesh seeks private sector funds to invest in infrastructure projects with the help of a $165 million loan facility to be funded by the Asian Development Bank (ADB).
The Public-Private Infrastructure Development Facility will catalyse private sector investments of up to $600 million to finance 15 to 20 projects, mostly in energy that will add at least 900 megawatts (MW) of power in Bangladesh and provide electricity to about 100,000 more households through the renewable energy programme.
ADB is providing $82 million to help finance large infrastructure projects worth more than $30 million each; $50 million to assist small and medium-sized energy projects with a total project cost size of not more than $30 million each; and $33 million to promote renewable energy.
A $500,000 technical assistance grant will also be provided for training and support.
Bangladesh's public investments in the infrastructure sector have remained stagnant in recent years, accounting for only 6.0 per cent to 7.0 per cent of the gross domestic product.
Currently, only 60 per cent of urban households and 22 per cent of rural households have electricity connections.