This project will enable Bangladesh to catalyse private sector financing, reduce pressure on public finance to address deficits, and create more jobs, says the country director The Asian Development Bank (ADB) has approved an additional $100 million loan to support critical infrastructure development through public-private partnerships (PPP) in Bangladesh.
“The loan will enhance the financial and institutional capacity of the Bangladesh Infrastructure Finance Fund Limited (BIFFL) to deliver its mandate of fostering an environment that supports sustainable private investments through the mobilisation of PPP, with a strong focus on gender and climate change,” said ADB Country Director for Bangladesh Hoe Yun Jeong in a statement issued on Monday (9 December).
“This project will enable Bangladesh to catalyse private sector financing, reduce pressure on public finance to address infrastructure development deficits, and create more employment,” he said.
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The ADB statement said 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 the shortage of long-term debt funding in the local market, it said.
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.
Strengthening the 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, read the statement.
With ADB’s support, BIFFL will establish gender screening of subprojects and develop a gender equality and social inclusion strategy, it added.