DHAKA: The Asian Development Bank (ADB) has signed an agreement with the government of Bangladesh to provide an additional $100 million in financing to the Bangladesh Infrastructure Finance Fund Limited (BIFFL). The funding aims to bolster infrastructure development through public-private partnerships (PPP) by 2029, according to an official statement.
According to Bangladesh Sangbad Sangstha, the agreement, titled “Strengthening Bangladesh Infrastructure Finance Fund Limited Project-Additional Financing,” was signed by Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky and ADB Country Director in Dhaka Hoe Yun Jeong. The signing ceremony was attended by senior officials from both the ERD and ADB. Additionally, BIFFL Chief Executive Officer SM Anisuzzaman and Hoe Yun Jeong signed a separate project agreement to further outline the terms of the initiative.
The project, under the oversight of ERD, is set to catalyze commercial financing for PPP projects, focusing on key infrastructure secto
rs. The ADB’s Ordinary Capital Resources loan, which will finance the project, has a repayment period of 25 years, including a 5-year grace period. The interest rate for the loan is SOFR+0.50% plus a Maturity Premium of 0.10%, alongside a Commitment Charge of 0.15%.
Bangladesh has been a member of ADB since 1973, and over the years, ADB has become one of its largest multilateral development partners. To date, ADB’s financial assistance to Bangladesh totals over $31,897.47 million in loans and $571.2 million in grants. The bank’s support has been directed primarily towards sectors such as power, energy, local government, transport, education, agriculture, health, water resources, governance, and finance.