The New Nation - Internet Edition

Staff Reporter

Bangladesh Bank signed a Facility Access Agreement with NCC Bank Limited yesterday whereby the NCC Bank is borrowing US$ 24 million from the World Bank supported Investment Promotion and Financing Facility (IPFF) Project for financing three small power plants (SPPs) to be set up by Doreen Power Generations and Systems Limited. The three SPPs are expected to add 66MW of additional power in the national grid between October and December this year.

Md Abul Quasem, IPFF Project Director and Executive Director of Bangladesh Bank and Md Nurul Amin, Managing Director of NCC Bank Limited signed the agreement at the Bangladesh Bank premise where senior officials from the World Bank, Bangladesh Bank and NCC Bank were also present.

Earlier the World Bank approved US$ 50.0 million equivalent IPFF Project to introduce longer term financing for private sector led infrastructure initiatives within the Public Private Partnership (PPP) framework.

"Due to the ongoing preference for shorter term financing and with limited capacity, the local financial institutions are not yet keen to finance infrastructure projects for a longer term like 10- 15 years" said Xian Zhu, the World Bank Country Director. "The IPFF would enhance capacity of the local financial sector and bolster their ability for financing the much needed PPP ventures in infrastructure sector".

Local financial institutions can apply for IPFF fund through Bangladesh Bank "As the country is facing acute power crisis, IPFF so far has received funding application for six small power plants to be set up by private sector entrepreneurs", said A.K.M. Abdullah, Financial Sector Specialist, World Bank. "Infrastructure projects from other sectors like roads, bridges, flyovers, container terminals, telecommunication, waste management etc. are also eligible for IPFF fund"

The IPFF project cell in Bangladesh Bank provides all necessary supports to the financial institutions and also to the private sector entrepreneurs in handling the project modalities and in application processing.