Private sector entrepreneurs asked to avail facility of IPFF

Bangladesh Bank (BB) governor Dr Atiur Rahman Tuesday urged the private sector entrepreneurs to avail the facility of Investment Promotion and Financing Facility (IPFF) fund at a low interest rate for improving the infrastructure of the country.

He was addressing an agreement signing ceremony between United Commercial Bank (UCB) and Baraka Patenga Power Ltd (BPPL) in a city hotel for implementing Independent Power Producer (IPP) plant project at Chittagong.

UCBL-lead arranger of the fund disbursement for financing a 50 MW Independent power generation plant under the Investment Promotion and Financing Facility (IPFF) of Bangladesh Bank

Muhammed Ali, managing director of UCB and Gulam Rabbani Chowdhury, managing director of BPPL signed the agreement from the part of their respective organisation.

Among others, Deputy Governor of Bangladesh Bank Md. Abul Quasem, Financial Sector Specialist of World Bank Dr. A K M Abdullah, Managing Director of Trust Bank Ishtiaque Ahmed Chowdhury, Chairman of Baraka Patenga Power Limited Faisal Ahmed Chowdhury and Managing Director of Baraka Patenga Power Limited Golam Rabbani, Additional Managing Directors of UCB M. Shahidul Islam, Mirza Mahmud Rafiqur Rahman and A E Abdul Muhaimen; Deputy Managing Directors of UCB Md. Tariqul Azam & Mohammed Shawkat Jamil;  Deputy Project Director of Bangladesh Bank Husne Ara Shikha along with other senior officials of UCB and other institutions were present at the event.  

This is the first ever IPP in foreign currency through IPFF project cell of BB funded by International Development Association (IDA) of the World Bank(WB). The central bank governor handed over a cheque of $ 21.97 million to UCB managing director. UCB and Trust Bank Limited will jointly disburse the said fund, where UCB is acting as a lead arranger.   

Addressing as the chief guest, the governor urged the private entrepreneur to utilise the IPFF fund for improving the infrastructure of the country. "Infrastructural development is essential for attaining a sustainable economy", said the governor.

He said the central bank is trying to invest in the private sector from foreign exchange loan fund at the rate of 4 per cent interest. The central bank has already approved $250 million IPFF fund which will be distributed various project, said the governor.

"Lack of proper project file is huge hindrance to disburse the IPFF fund to our entrepreneurs, said the governor adding that the IPFF fund can be disbursed to industrial park, education and health sector, and Information Communication Technology (ICT).

He said the central bank is going to announce its Monetary Policy Statement (MPS) for the second half (H2) of the current 2013-14 (FY14) financial year very soon. One of the major focuses of the new MPS would be the expansion of the private sector credit, said the governor.

"We need to provide the sufficient financial assistance from foreign and local fund to flourish the private sector to reduce poverty and economic disparity from the society", said Atiur.

The central bank governor said that the central bank will disburse easy loan to the private sector from foreign reserve of the country if the WB denied to the financial assistance to local entrepreneurs.

"Country's foreign reserve has already crossed $ 18 billion through which six months import payment would be possible. The surplus of current account balance stood at $ 2.5 billion which is the highest in South Asian countries. Bangladesh is now the member of elite club of 6 month foreign currency reserve countries." He said.

Mentioning tragic incidents of Standard Group which was burnt down, he said after the fire incidents, the central bank provided $ 25 million to Standard Group for running their business from the export development fund (EDF) which was the example of the central bank initiative to promote the private sector.

AKM Abdullah, financial sector specialist of WB said that WB is encouraging to promote private sector growth but the private entrepreneurs of the country are fail to develop projects as per WB standard.

UCB managing director Muhammed Ali appreciated the governor for his policy to implement the financial inclusion of the central bank such as green banking, mobile banking, Corporate Socail Responsibility (CSR) activities of banks, school banking etc.

"We are in a position to launch agent banking to engage more people in financial inclusion, the managing director said. Ali said, 'UCB is following inclusive Banking under the guideline of Bangladesh Bank.'

Managing director of BPPL Gulam Rabbani Chowdhury said that environmental friendly power generation is the main target of BPPL and in this regard BPPL are using the modern technology.

Istiaque Ahmed Chowdhury, managing director and chief executive officer of Trust Bank Ltd said that Trust bank is has applied IPP project which will be added 50MW energy to the national grid.

The central bank deputy governor Md. Abul Quasem said that Bangladesh Bank, with the financial assistance of World Bank, is implementing the IPFF project for financing in a wide range of infrastructure development ventures in nine key areas including, power, ports, environment and solid waste management, highways and express ways, airport and terminal, water supply, economic development, social sector and information

technology.