ADB offers $50m for PPP projects
FE REPORT | Friday, 11 September 2020
The Asian Development Bank (ADB) on Thursday confirmed US$50 million loans to promote, fund, and implement public-private partnership (PPP) infrastructure projects in Bangladesh.
The Manila-based lender signed a loan agreement with the government in this connection, according to a statement.
Fatima Yasmin, secretary of the Economic Relations Division (ERD) and Manmohan Parkash, country director, ADB, virtually signed the loan agreement on behalf of Bangladesh and ADB respectively.
S M Anisuzzaman, chief executive officer of Bangladesh Infrastructure Finance Fund Limited (BIFFL) also signed the project agreement.
Using the ADB's financial intermediary loan, the BIFL project will provide long-term local currency financing for qualified PPP infrastructure sub-projects.
The Manila-based lender has been a long-standing partner to support BIFFL to promote PPP programme and develop its pipeline of projects.
The ADB has also assisted the government to develop the PPP Act, set up the PPP office, and an institutional framework for PPP in addition to supporting priority sectors of Bangladesh as a transaction advisor.
A $650,000 technical assistance grant from ADB's Financial Sector Development Partnership Special Fund will support the BIFFL to review and update its corporate strategy, as well as assess and improve capacity to manage environmental and social safeguards, and project implementation.
ADB country director Manmohan Parkash said, "The project will strengthen BIFFL's capacity to mobilise private investments, develop infrastructure projects, and create jobs, which will accelerate the economic recovery process after the coronavirus pandemic."
The project will generate about 3,000 jobs in PPP projects supported by BIFFL by 2024 and help implement PPP infrastructure subprojects developed by government agencies, he said
"In addition to catalysing greater private sector commercial infrastructure financing and investment, the project will also help the rollout of the government's PPP strategy," he added.
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