Bangladesh: Public-Private Infrastructure Development Facility (PPIDF)

Sovereign Project | 40517-013 Status: Active

Summary

Latest Project Documents

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Procurement Documents

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Project Name Public-Private Infrastructure Development Facility (PPIDF)
Project Number 40517-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2453-BAN: Public-Private Infrastructure Development Facility (PPIDF)
Asian Development Fund US$ 83.00 million
Loan 2454-BAN: Public-Private Infrastructure Development Facility (PPIDF)
Ordinary capital resources US$ 82.00 million
Loan: Public-Private Infrastructure Development Facility (PPIDF)
Islamic Development Bank US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Infrastructure finance and investment funds

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Under Component A, ADB disbursed the full $82 million for financing three large subprojects in the energy sector through IDCOL. Of the three, two power plants have a capacity of 108MW each with total project costs of $92.86 million and $84.18 million, of which ADB share was $30 million each. The other power plant has a capacity of 335MW with a total project cost of $318.73 million, including ADB share of $22 million.

Under Component B, ADB financed two subprojects in the telecommunications sector. One of the subprojects was to establish a broadband wireless network with a total project cost of $47.5 million and ADB share of $3.6 million. The other subproject was to finance a nationwide telecommunication transmission network having a project cost of $14.5 million including ADB share of $1.4 million.

Under Component C, IDCOL financed over 349,000 solar home systems through 24 partner organizations.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Lending terms of IDCOL

(i) As per current lending policy of IDCOL, maximum tenor for both foreign and local currency loans is 15 years, including a maximum grace period of 3 years.

(ii) IDCOL's current borrowing is primarily from development partners. Therefore, the company enjoys concessionary borrowing rates compared to the prevailing market lending rates in Bangladesh.

2. Ability to mobilize long-term capital

(i) IDCOL will consider issuance of debt instruments in the future.

(ii) To date, IDCOL has arranged syndicated term loan facilities for eight infrastructure projects, of which one was funded by PPIDF. Of the eight, four are in the power sector, two are towards central effluent treatment plants, and the remaining two are for ICT infrastructure and land ports. In addition, the company has co-arranged loans for four other subprojects in the power and telecommunication sectors.

3. Enhanced governance

(i) IDCOL has obtained AAA rating in 2015. The rating was valid till 31 December 2015.

(ii) IDCOL will consider obtaining credit rating from an internationally accepted credit rating agency once it intends to raise additional fund from international market. At present, the company has no plans for foreign currency loan on commercial terms.

4. Enhanced capacity for environmental and social safeguards standards

(i) IDCOL has adopted the environmental and social safeguard framework (ESSF) in August 2011. The ESSF has been updated and posted on IDCOL''s website since 2012.

(ii) So far, IDCOL has obtained environmental and social clearances from ADB for five projects - three in the power sector and two in the telecommunication sector.

5. Enhanced efficiency of IDCOL

(i) The processing time, among other things, depends on the type of projects, scopes of social and environmental appraisal. Average processing time of IDCOL seems to have improved. While, IDCOL's response time has also improved, the company expects to improve its response time further.

Geographical Location Bangladesh

Safeguard Categories

Environment FI
Involuntary Resettlement A
Indigenous Peoples A

Summary of Environmental and Social Aspects

Environmental Aspects The Project is classified as category FI (Financial Intermediaries) in accordance with ADB's Environment Policy (2002). An environmental and social safeguards framework was developed to assist in the environmental and social safeguards assessment of subprojects during implementaion of the Project and to ensure compliance with all relevant ADB policies.
Involuntary Resettlement Involuntary resettlement has significant impact. A resettlement framework has been developed as part of the environmental and social safeguards framework to guide the resettlement assessment of subprojects during the implementation of PPIDF. Based on the framework, appropriate resettlement plans were prepared for each subproject having resettlement impacts.
Indigenous Peoples Impact on indigenous peoples is also significant. A social safeguard framework covers the basic requirement of screening and planning to address any tribal (indigenous) population issues arising from any subproject. Appropriate tribal peoples development plans were prepared for each subproject having any impacts.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultation meetings were held with the Finance Division of the Ministry of Finance (the executing agency), IDCOL (the implementing agency), Bangladesh Bank, Ministry of Finance, and the private sector. Furthermore, on-site due diligence was conducted with sponsors of large infrastructure subprojects and participating organizations under IDCOL's renewable energy program.
During Project Implementation Periodical meetings, review missions, follow-up are being carried out during project implementation. All activities under the loans have been completed.

Business Opportunities

Consulting Services n/a
Procurement

For subprojects to be financed out of component A, IDCOL will required its sub-borrowers to adopt internationally competitive bidding procedures in accordance with ADB's Procurement Guidelines as amended from time to time, and the Government's guidelines, policies, and regulations.

For subprojects to be financed out of components B and C, ADB will encourage IDCOL to require its sub-borrowers to adopt international competitive bidding procedures in accordance with ADB Procurement Guidelines as amended from time to time when the amount of the investment is unusually large and economy and efficiency can be gained by such procedures.

For procurement of goods and services to be financed by subloans out of the loan proceeds, the sub-borrower will ensure, and certify to ADB if requested, that goods and services obtained are suitable for the subloans, that the price paid is least-cost, and that account is taken of factors such as time of delivery, efficiency, and the reliability of goods.

For build-operate-transfer subprojects and variants, if the subproject sponsor or engineering, procurement, and construction contractor is selected through competitive bidding amount international entities in accordance with procedures acceptable to ADB, such subproject sponsore or contractor may apply its own procedures for procurement provided that such procurement is for goods, services, and works supplied from, or produced in, ADB member countries. Moreover, such subproject sponsors or contractors must only be nationals of ADB member countries.

Responsible Staff

Responsible ADB Officer Bidyut Saha
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Finance Division, MOF (EA)
Bangladesh Secretariat, Dhaka-1000
Bangladesh
Ministry of Finance
Md. Aminul Islam Bhuiyan
Sher-e Bangla Nagar, Dhaka, Bangladesh

Timetable

Concept Clearance 02 May 2007
Fact Finding 22 Oct 2007 to 26 Oct 2007
MRM 22 May 2008
Approval -
Last Review Mission -
PDS Creation Date 08 Jun 2007
Last PDS Update 01 Mar 2016

Loan 2453-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 21 Oct 2008 24 Feb 2009 31 Dec 2013 - 21 Jul 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 183.00 Cumulative Contract Awards
ADB 83.00 02 Oct 2008 81.64 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 100.00 02 Oct 2008 81.64 0.00 100%

Loan 2454-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 21 Oct 2008 24 Feb 2009 31 Dec 2013 31 Dec 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 82.00 Cumulative Contract Awards
ADB 82.00 02 Oct 2008 82.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Oct 2008 82.00 0.00 100%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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