Special Correspondent :
Three private commercial banks namely Bank Asia, BRAC Bank and Trust Bank have been given U$$ 403.70 million equivalent to BDT 3177.12 crore for disbursing as long term loans to finance government’s infrastructure projects for implementation by private entrepreneurs, Bangladesh Bank (BB) said.
The funds will be jointly carried by the government and World Bank to be channeled through Investment Promotion and Financing Facility (IPFF) project to the banks for disbursing to the approved projects.
An agreement styled “Master Facility Agreement (MFA)” was inked between the PFIs (Three Banks) and the IPFF Cell at the Central Bank on Sunday (October 14).
The Central Bank has been implementing the IPFF project on behalf of Finance Division, Ministry of Finance, since 21st August 2006 (first phase) while its second phase began on 7th July 2010.
Banks here will play the role of executing agency as Participating Financial Institution (PFI) and supposed to bear all the commercial risks associated with debt financing. A PFI would also share 15 percent of a loan scheme for a project as per agreement. The government and World Bank’s share in every single loan-scheme is 25 percent and 60 percent respectively.
In this case, such projects must be led by private sector and endorsed by relevant government agencies.
The IPFF is an on-lending based Technical Assistance (TA) project to supplement the resource of the country’s financial markets to provide long term finance for infrastructure and other investment projects beyond the capacity of local financial institutions and to promote the role of private sector entrepreneurs in the development of capital projects, especially infrastructure.
Eligible sectors for financing under IPFF are power generation, transmission, distribution and services; port development (sea, river and land); environmental, industrial and solid waste management; highways and expressways including flyovers; water supply and distribution, sewerage and drainage; industrial estates and park development; economic zones, eco parks, theme parks, social sector including health and education; and information technology.
Ahmed Jamal, Deputy Governor of Bangladesh Bank, who is also IPFF Project’s Director, Rathin Kumar Paul, Deputy General Manager of Bangladesh Bank and Deputy Project Director of IPFF, A.K.M. Abdullah, Senior Financial Sector Specialist of the World Bank, senior officials of Bangladesh Bank and Chief Executive Officers as well as senior officials of concerned private banks were present.
Three private commercial banks namely Bank Asia, BRAC Bank and Trust Bank have been given U$$ 403.70 million equivalent to BDT 3177.12 crore for disbursing as long term loans to finance government’s infrastructure projects for implementation by private entrepreneurs, Bangladesh Bank (BB) said.
The funds will be jointly carried by the government and World Bank to be channeled through Investment Promotion and Financing Facility (IPFF) project to the banks for disbursing to the approved projects.
An agreement styled “Master Facility Agreement (MFA)” was inked between the PFIs (Three Banks) and the IPFF Cell at the Central Bank on Sunday (October 14).
The Central Bank has been implementing the IPFF project on behalf of Finance Division, Ministry of Finance, since 21st August 2006 (first phase) while its second phase began on 7th July 2010.
Banks here will play the role of executing agency as Participating Financial Institution (PFI) and supposed to bear all the commercial risks associated with debt financing. A PFI would also share 15 percent of a loan scheme for a project as per agreement. The government and World Bank’s share in every single loan-scheme is 25 percent and 60 percent respectively.
In this case, such projects must be led by private sector and endorsed by relevant government agencies.
The IPFF is an on-lending based Technical Assistance (TA) project to supplement the resource of the country’s financial markets to provide long term finance for infrastructure and other investment projects beyond the capacity of local financial institutions and to promote the role of private sector entrepreneurs in the development of capital projects, especially infrastructure.
Eligible sectors for financing under IPFF are power generation, transmission, distribution and services; port development (sea, river and land); environmental, industrial and solid waste management; highways and expressways including flyovers; water supply and distribution, sewerage and drainage; industrial estates and park development; economic zones, eco parks, theme parks, social sector including health and education; and information technology.
Ahmed Jamal, Deputy Governor of Bangladesh Bank, who is also IPFF Project’s Director, Rathin Kumar Paul, Deputy General Manager of Bangladesh Bank and Deputy Project Director of IPFF, A.K.M. Abdullah, Senior Financial Sector Specialist of the World Bank, senior officials of Bangladesh Bank and Chief Executive Officers as well as senior officials of concerned private banks were present.
