The Asian Development Bank (ADB) on Monday approved a $100 million loan in additional financing for the Bangladesh Infrastructure Finance Fund Limited (BIFFL).
The funds will come under the Strengthening the Bangladesh Infrastructure Finance Fund Limited Project of the state-run agency entrusted with with providing support to critical infrastructure development through public-private partnerships (PPP).
The additional loans will strengthen BIFFL’s capacity to crowd in private sector financing and facilitate new technologies brought by international sponsors and foreign direct investors.
“This project will enable Bangladesh to catalyze private sector financing, reduce pressure on public finance to address infrastructure development deficits, and create more employment,” an ADB release quoted ADB Country Director for Bangladesh Hoe Yun Jeong as saying.
With ADB’s support, BIFFL will establish gender screening of subprojects and develop a gender equality and social inclusion strategy.
“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 mobilization of PPP, with a strong focus on gender and climate change,” Hoe added.
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. 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.
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 69 members—49 from the region.
