The Asian Development Bank (ADB) has approved a $50 million loan to fund public-private partnership (PPP) infrastructure projects in Bangladesh.
Its board approved the loan on Tuesday at a meeting held in Manila, according to a press Release.
The ADB assistance will help implement PPP infrastructure subprojects developed by government agencies.
The financial intermediary loan will strengthen the capacity of Bangladesh Infrastructure Finance Fund Limited (BIFFL) established by the government to provide long-term local-currency debt financing to infrastructure projects.
ADB Principal Financial Sector Specialist Dongdong Zhang said the assistance will help strengthen government capacity to develop PPP infrastructure projects and catalyse greater private sector infrastructure investments.
"As the country starts to recover from the severe impacts of the Covid-19 pandemic, PPP will emerge as an important tool to leverage private sector resources to develop infrastructure and create jobs," he added.
Bangladesh recorded strong economic growth in the recent decade, with the gross domestic product growing at an average 7 percent per year. This has increased demand for energy, transportation, and urban infrastructure development projects.
The ADB has been a long-standing partner to support BIFFL to promote PPP programme and develop its pipeline of projects. The organisation has also assisted the government to develop the PPP Act and an institutional framework for PPPs in addition to supporting priority sectors of Bangladesh as a transaction advisor.
A $650,000 technical assistance grant from the ADB's Financial Sector Development Partnership Special Fund will support BIFFL to review and update its corporate strategy, as well as assess and improve capacity to manage environmental and social safeguards, and project implementation.
The ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members, 49 from the region.