Expat bank veteran heads IDCOL
Thursday, 9 April 2009
A Z M Anas
An expatriate banking veteran has been named the top executive of IDCOL, the company said Wednesday, as the state lender moves to inject new dynamism into its decade-long infrastructure business.
Islam Sharif, a former American Citibank executive, has brought with him 26 years of experience in the US financial industry, but close watchers of the institution say he faces an uphill challenge to plug the financing gap in Bangladesh's rickety infrastructure sector.
Mr Sharif, armed with a finance degree from Long Island University, was, however, upbeat about overcoming the challenge and vowed not to back off.
Established in 1997, IDCOL remains the country's largest infrastructure financier, pumping more than half of its US$200 million lending portfolio into the power sector alone. It also pioneered funding solar lighting systems in areas, where the national grid's electricity supply is absent.
"I'm too confident to excel in this specialised business. Roadblocks are everywhere. But it's possible to navigate," Mr Sharif told FE at his office.
He said that he would seek to infuse new life into IDCOL (Infrastructure Development Company Ltd), backed by team spirit and transparent communication system.
"This company is a great institution. There's a stake for all," he said.
So far, IDCOL has funded installation of 290,00 solar panels across the country through its partners. It plans to install 1.0 million panels by 2012.
Its investment portfolio is also diverse, with major lending going to power plants, telecom services, information technology and land ports.
The new IDCOL top boss said his priority is to finance large power plants, as the country reels from severe shortage of electricity.
"In the short-term, my plan is to fund a power plant that can add at least 400 megawatt of electricity to the national grid," he said.
Mr Sharif noted that he would lead a major energy-efficiency drive, thus saving an investment of upto US$450 million, an amount required to build a large power plant.
His appointment comes at a time when the worst economic crisis in many decades has pummelled the global financials, drying up liquidity for funding big infrastructure projects.
Bangladesh also needs multi-billion dollars to meet its priority infrastructure projects.
"His appointment will attract foreign investors' attention, primarily because of his long experience in the US financial industry. His sophisticated financial expertise will take IDCOL to its next level," Faisal Mobin Chowdhury, chief executive officer of Pendekar Energy, said.
"I think, Mr Sharif will understand the mindset of a foreign investor and more importantly deliver services an investor expects from a lender," the head of Pendekar's Bangladesh affiliate added.
IDCOL lent out US$80 million to 450 megawatt Meghnaghat power plant, now owned by a consortium led by Malaysian Pendekar Energy.
The Finance Ministry-owned company's hunt for top talent gained momentum when Mr Sharif's predecessor Ehsanul Huq relinquished the post late last year, serving the institution for just a year. He is now at the helm of Prime Bank, a top private bank.
The founder CEO Dr Fouzul Kabir Khan ran the institution for 10 years and stepped down in 2007 to become secretary to the Power Division under the army-backed caretaker regime. Before joining IDCOL, Mr Khan was a civil servant.
Migration experts say the increasing trend of return of Bangladeshi diaspora will create a new wave of "knowledge-gain" for the country.
"I really want to create a trend, set an example so that others can come back to the country to do great things. You may call it reverse brain drain," Mr Sharif said.
Just before joining IDCOL, he served as a vice president at Citibank NA in New York and also worked for Chase Manhattan Bank, Charles Schvab and Prudential in the United States.
An expatriate banking veteran has been named the top executive of IDCOL, the company said Wednesday, as the state lender moves to inject new dynamism into its decade-long infrastructure business.
Islam Sharif, a former American Citibank executive, has brought with him 26 years of experience in the US financial industry, but close watchers of the institution say he faces an uphill challenge to plug the financing gap in Bangladesh's rickety infrastructure sector.
Mr Sharif, armed with a finance degree from Long Island University, was, however, upbeat about overcoming the challenge and vowed not to back off.
Established in 1997, IDCOL remains the country's largest infrastructure financier, pumping more than half of its US$200 million lending portfolio into the power sector alone. It also pioneered funding solar lighting systems in areas, where the national grid's electricity supply is absent.
"I'm too confident to excel in this specialised business. Roadblocks are everywhere. But it's possible to navigate," Mr Sharif told FE at his office.
He said that he would seek to infuse new life into IDCOL (Infrastructure Development Company Ltd), backed by team spirit and transparent communication system.
"This company is a great institution. There's a stake for all," he said.
So far, IDCOL has funded installation of 290,00 solar panels across the country through its partners. It plans to install 1.0 million panels by 2012.
Its investment portfolio is also diverse, with major lending going to power plants, telecom services, information technology and land ports.
The new IDCOL top boss said his priority is to finance large power plants, as the country reels from severe shortage of electricity.
"In the short-term, my plan is to fund a power plant that can add at least 400 megawatt of electricity to the national grid," he said.
Mr Sharif noted that he would lead a major energy-efficiency drive, thus saving an investment of upto US$450 million, an amount required to build a large power plant.
His appointment comes at a time when the worst economic crisis in many decades has pummelled the global financials, drying up liquidity for funding big infrastructure projects.
Bangladesh also needs multi-billion dollars to meet its priority infrastructure projects.
"His appointment will attract foreign investors' attention, primarily because of his long experience in the US financial industry. His sophisticated financial expertise will take IDCOL to its next level," Faisal Mobin Chowdhury, chief executive officer of Pendekar Energy, said.
"I think, Mr Sharif will understand the mindset of a foreign investor and more importantly deliver services an investor expects from a lender," the head of Pendekar's Bangladesh affiliate added.
IDCOL lent out US$80 million to 450 megawatt Meghnaghat power plant, now owned by a consortium led by Malaysian Pendekar Energy.
The Finance Ministry-owned company's hunt for top talent gained momentum when Mr Sharif's predecessor Ehsanul Huq relinquished the post late last year, serving the institution for just a year. He is now at the helm of Prime Bank, a top private bank.
The founder CEO Dr Fouzul Kabir Khan ran the institution for 10 years and stepped down in 2007 to become secretary to the Power Division under the army-backed caretaker regime. Before joining IDCOL, Mr Khan was a civil servant.
Migration experts say the increasing trend of return of Bangladeshi diaspora will create a new wave of "knowledge-gain" for the country.
"I really want to create a trend, set an example so that others can come back to the country to do great things. You may call it reverse brain drain," Mr Sharif said.
Just before joining IDCOL, he served as a vice president at Citibank NA in New York and also worked for Chase Manhattan Bank, Charles Schvab and Prudential in the United States.