IDA Credit: US$257 million equivalent
Terms: Maturity = 40 years; Grace = 10 years
Project ID: P117542
Project Description: The additional financing Investment Promotion and Financing Project for Bangladesh will continue to build on the positive impacts made through implementation of the ongoing IPFF project in the areas of: (i) expansion of long term financing for infrastructure sectors in Bangladesh; (ii) demonstration of the economic and business case for Public-Private Partnerships (PPPs) in infrastructure; and (iii) capacity building of government agencies and other stakeholders on PPPs, towards building a national PPP pipeline and framework. The operation will support Bangladesh Bank (BB), the implementing agency, to expand the scope of funding for the financing of PPP ventures in a wide range of infrastructure sectors, scaling up the current successful experience in the power sector. The operation is expected to increase additional financing of infrastructure by over US$400 million, leveraging about 100 percent private resources. It is expected to increase infrastructure supply in the power sector - renewable energy and energy savings - as well as bridges, ports, container terminals, water treatment plants, waste disposal projects, and others. The increased provision of infrastructure will create (or help maintain) jobs during the economic slowdown, and remove bottlenecks in economic growth caused by existing infrastructure shortages.