Supporting private sector infrastructure initiatives

 

A World Bank study ‘Bangladesh Investment Climate Assessment’ in 2003 identified lack of access to finance and poor infrastructure as the two main stumbling blocks for private sector development in Bangladesh. This led to the introduction of a Government initiative called Investment Promotion and Financing Facility (IPFF), which the World Bank is supporting since 2006 with US$ 47.5 million interest-free loan.

A recent review mission of the Bank found a considerable progress has been made over the last one year. This included, among others:  signing Technical Services Agreement (TSA) with Infrastructure Investment Facilitation Center (IIFC), signing Master Facility Agreement (MFA) with 10 Participating Financial Institutions (PFIs), and getting the Technical Project proposal (TPP) approved. Several investment workshops were also held for private sector entrepreneurs organized by IFC, under a TA component of the Project.

The project aims at promoting longer term finances for the private entrepreneurs, willing to invest in infrastructure. Government has a list of projects in the pipeline that are eligible for IPFF funding. At the moment IPFF gives special emphasis on infrastructure projects in the power sector. In this context, WB expects to finance some of the Small Power Plants (SPPs) currently being executed by the Power Cell under Power Division

The entrepreneurs of SPPs are waiting to sign power purchase agreements with the government. If there are more good investment proposals coming for private infrastructure projects, there is scope for enhancement of IPFF loan amount.

September 2007

Contacts:
Rezwan-ul-Alam (8802) 815-9015, Ext 4242,      E-mail:  salam3@worldbank.org
for more information on the World Bank in Bangladesh, please visit : www.worldbank.org.bd & www.worldbank.org