RSS   Newsletter   Contact   Advertise with us

Bangladesh and ADB in $110m deal to help IDCOL

Share on Twitter Share on LinkedIn
Staff writer ▼ | April 7, 2014
The government of Bangladesh has signed an $ 110 million loan agreement with the Asian Development Bank (ADB) to support private sector infrastructure projects including renewable energy.
Bangladesh IDCOL
Bangladesh IDCOLThe government of Bangladesh has signed an $ 110 million loan agreement with the Asian Development Bank (ADB) to support private sector infrastructure projects including renewable energy.


The loan will support the Second Public–Private Infrastructure Development Facility established under the state-owned Infrastructure Development Company Ltd (IDCOL).

Economic Relations Division Secretary Mohammad Mejbahuddin, and Deputy Country Director and Officer-in-Charge of ADB's Bangladesh Resident Mission Oleg Tonkonojenkov signed the agreement at ERD office.

The sum, which has to be repaid in 25 years, comes with a five-year grace period and the interest rate is determined in accordance with ADB's London Interbank Offered Rate (LIBOR).

The deal aims to help IDCOL to invest more in projects in power generation, water and sanitation, transportation, and information technology.

The World Bank and the Japan International Cooperation Agency will co-finance the project with $99.5 million and $96 million respectively. Private sector investors will also contribute $50 million as equity financing, and debt funding.

IDCOL currently has a pipeline of eight energy projects with a total investment amount of around $235 million. This will also support IDCOL to expand its programmes to finance off-grid solar home systems for households and small businesses in remote rural areas.

IDCOL hit its target of 2 million installations last year, and is now seeking to finance 2 million more by 2015.

“Getting more power stations, roads, and water networks built would accelerate development, and could draw in more foreign direct investments,” the ADB official said.

Bangladesh has been a member of the Manila based ADB since 1973. As of last year, ADB's portfolio for Bangladesh included 58 loans with $5.19 billion in total value.

Energy, transport, urban infrastructure, and water supply and sanitation, education, agriculture and natural resources, and finance sectors are the areas that it mostly supports.


 

MORE INSIDE POST