The Asian Development Bank (ADB) approved a $100 million loan in additional financing support for critical infrastructure development through public-private partnerships (PPP) in Bangladesh, says a press release on Monday.
"This project will enable Bangladesh to catalyze private sector financing, reduce pressure on public finance to address infrastructure development deficits, and create more employment," said ADB Country Director Hoe Yun Jeong.
"The loan will enhance the financial and institutional capacity of Bangladesh Infrastructure Finance Fund Limited (BIFFL) to deliver its mandate of fostering an environment that supports sustainable private investments through mobilization of PPP, with a strong focus on gender and climate change."
Bangladesh is undergoing a transformative phase, driven by economic shifts and recent political transition. The country's infrastructure development, primarily driven by the public sector, faces challenges due to limited resources and implementation constraints.
A key hurdle in infrastructure investment is shortage of long-term debt funding in the local market. The ADB loan aims to address this gap by providing long-term financing to BIFFL, facilitating the completion of critical infrastructure projects that will foster economic growth.
For strengthening of Bangladesh Infrastructure Finance Fund Limited Project - Additional Financing will strengthen BIFFL's capacity to crowd in private sector financing and facilitate new technologies brought by international sponsors and foreign direct investors.
