The Public-Private Infrastructure Development Facility (PPIDF) includes and $82 million loan from ADB's ordinary capital resources (OCR), an $83 million equivalent loan from ADB's special funds resources and a technical assistance grant of $500,000 for capacity building and supporting project implementation.
Component A will use ADB's OCR funds of $82 million to provide financing to the Government of Bangladesh for relending to the Infrastructure Development Company Limited (IDCOL) to finance private sector-sponsored large infrastructure subprojects with a subproject size of more than $30 million.
Component B will provide ADF support of $50 million equivalent to the Government for relending in local currency to IDCOL to finance small and medium-sized infrastructure subprojects primarily located in rural and semiurban areas, especially in the energy sector.
Project Name | Public-Private Infrastructure Development Facility (PPIDF) | ||||||||||||||||||
Project Number | 40517-013 | ||||||||||||||||||
Country | Bangladesh |
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Project Status | Closed | ||||||||||||||||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth |
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Drivers of Change | Governance and capacity development Private sector development |
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Sector / Subsector | Finance / Infrastructure finance and investment funds |
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Gender Equity and Mainstreaming | No gender elements | ||||||||||||||||||
Description | The Public-Private Infrastructure Development Facility (PPIDF) includes and $82 million loan from ADB's ordinary capital resources (OCR), an $83 million equivalent loan from ADB's special funds resources and a technical assistance grant of $500,000 for capacity building and supporting project implementation. Component A will use ADB's OCR funds of $82 million to provide financing to the Government of Bangladesh for relending to the Infrastructure Development Company Limited (IDCOL) to finance private sector-sponsored large infrastructure subprojects with a subproject size of more than $30 million. Component B will provide ADF support of $50 million equivalent to the Government for relending in local currency to IDCOL to finance small and medium-sized infrastructure subprojects primarily located in rural and semiurban areas, especially in the energy sector. Component C will provide ADB funding of $33 million equivalent for the purpose of promoting renewable energy systems in Bangladesh. IDCOL will finance the set-up of renewable energy systems such as solar home systems and/or biomass installations through a microfinance-based, direct sales program. |
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Project Rationale and Linkage to Country/Regional Strategy | The PPIDF will directly support the Government's infrastructure development agenda by providing long-term funds for infrastructure financing. With ADB's assistance through the facility, IDCOL will be able to provide funds at commercial terms with maturity of more than 20 years for infrastructure subprojects, which are otherwise currently not available in the market. | ||||||||||||||||||
Impact | Improved per capita infrastructure availability |
Project Outcome | |
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Description of Outcome | Enhanced private sector participation in infrastructure development |
Progress Toward Outcome | Imprest Advance of $30 million made to IDCOL for disbursement to Regent Power. The liquidation is expected by December 2017. |
Implementation Progress | |
Description of Project Outputs | 1. Improved lending terms of IDCOL for infrastructure subprojects 2. Improved ability of IDCOL to mobilize long-term capital 3. Enhanced governance at IDCOL 4. Enhanced capacity for application of environmental and social safeguards standards 5. Enhanced efficiency of IDCOL in developing and financing infrastructure subprojects |
Status of Implementation Progress (Outputs, Activities, and Issues) | As per current lending policy of IDCOL, maximum tenor is 15 years including a maximum grace period of 3 years. IDCOL managed to reduce its weighted average borrowing cost from 3.29% in FY2011 to 2.93% in FY2015 (a reduction of 10.9%). The indicator appears to be inappropriate. Interest rate efficiency should be compared with a benchmark market rate (such as, LIBOR) rather than on absolute basis. IDCOL is yet to issue debt instruments as the company has adequate credit lines from development partners and underdeveloped capital market. IDCOL has arranged syndicated term loan facilities for eight infrastructure subprojects, of which one was financed by ADB. 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 port. IDCOL has obtained AAA rating in 2015. The rating is sustained in 2016. IDCOL will consider obtaining credit rating from an internationally accepted agency once it intends to raise additional fund from international market. At present, there is no plan for foreign currency loan on commercial terms. IDCOL has obtained environmental and social clearances from ADB for five projects i.e. NTTN, WiMAX, and 108 MW power plant of ECPVCL, Regent Porwer Plant, and Summit Meghnaghat Power Plant. IDCOL complied under ESSF for all its subprojects under PPIDF. ESSF has been updated and posted on IDCOL's website since 2012. The processing time, among other things, depends on the complexity of projects and scope of due diligence required. For the three large subprojects financed under the OCR loan of PPIDF, the average processing time (i.e. from the date IDCOL received the proposal until the time of IDCOL's Board approval) was approximately 12 months, on average. However, the processing time for smaller projects or projects funded from IDCOL's own resources are often shorter than 4 months. Larger projects having multiple foreign lenders and/or projects requiring multiple approvals from various regulators and from ADB require longer processing time. This indicator, alone, is not a good measure of efficiency, as complex infrastructure subjects may require 12 months or more. |
Geographical Location | Nation-wide |
Safeguard Categories | |
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Environment | FI |
Involuntary Resettlement | A |
Indigenous Peoples | A |
Summary of Environmental and Social Aspects | |
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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 | |
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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 ADB Officer | Saha, Bidyut Kumar |
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 | |
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Concept Clearance | 02 May 2007 |
Fact Finding | 22 Oct 2007 to 26 Oct 2007 |
MRM | 22 May 2008 |
Approval | 02 Oct 2008 |
Last Review Mission | - |
PDS Creation Date | 08 Jun 2007 |
Last PDS Update | 26 Sep 2017 |
Loan 2453-BAN
Milestones | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 366.00 | Cumulative Contract Awards | |||
ADB | 166.00 | 02 Oct 2008 | 81.64 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 200.00 | 02 Oct 2008 | 81.64 | 0.00 | 100% |
Loan 2454-BAN
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
02 Oct 2008 | 21 Oct 2008 | 24 Feb 2009 | 31 Dec 2013 | 31 Mar 2015 | 22 Jan 2018 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 164.00 | Cumulative Contract Awards | |||
ADB | 164.00 | 02 Oct 2008 | 82.00 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 02 Oct 2008 | 82.00 | 0.00 | 100% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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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
Title | Document Type | Document Date |
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Bangladesh: Public–Private Infrastructure Development Facility | Validations of Project Completion Reports | Dec 2019 |
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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Tenders
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Contracts Awarded
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Procurement Plan
None currently available.