The country's second largest paid-up capital based-company-Bangladesh Infrastructure Finance Fund Limited (BIFFL)--is coming forward with financial supports for a number of infrastructure projects to perform as a highly dedicated financial institution, officials said.
The officials have said the BIFFL is likely to disburse its first fund worth Tk 1.0 billion by February this year for the 108 MW Ghorasal Power Project (GPP).
The first PPP (public-private partnership) project is the 21-kilometre Dhaka Elevated Express Way which has applied for a fund worth Tk 8.0 billion from the BIFFL, they said.
The BIFFL started its journey as public limited company on March 21, 2011 under the ministry of finance (MoF) as special purpose vehicle to finance infrastructure projects in Bangladesh.
The Dhaka Stock Exchange (DSE) recently got registration from the Registrar of Joint Stock Companies and Firms (RJSC) with a paid-up capital of Tk 18.03 billion.
Before getting registration by the DSE, the BIFFL owned the highest amount of paid-up capital worth Tk 16.0 billion.
The company will also go for direct financing for infrastructure projects by conducting feasibility study.
"The board has already approved a fund worth Tk 1.0 billion for 108 MW Ghorasal Power Project (GPP). Besides, there are more five projects in which the BIFFL funds will be disbursed step by step," said Md. Atiquzzaman, the executive directive and chief executive officer of the BIFFL.
He said the financial closure of Dhaka Elevated Express Way, which will be funded by the BIFFL, be completed by January.
The officials of the BIFFL have said their company has achieved the capacity of disbursing funds in infrastructure projects with one year and six months of formulating guidelines and completing the recruitment of required manpower.
The BIFFL will also finance two projects in health sector and three projects in power sector.
Meanwhile, the BIFFL got registration from the Bangladesh Bank (BB) as the non-banking financial institution (NBFI) to ensure fund support from the BB.
The BIFFL will also take part in green banking projects with the central bank.
"We will get fund from the central bank at an interest of 5.0 per cent and disburse the funds for infrastructure funds at interest of 8.0 to 9.0 per cent," said the managing director of the BIFFL.
The BIFFL officials said the main objective of their company is to provide predominantly long-term financing for PPP projects through issuance of bonds and debt instruments and equity offerings.
