The Third Public-Private Infrastructure Development Facility (PPIDF 3) is a continuation of the work carried out under the Public-Private Infrastructure Development Facility (PPIDF 1) and the Second Public-Private Infrastructure Development Facility (PPIDF 2) in addressing the infrastructure deficiencies in Bangladesh. Through the two earlier interventions, ADB has provided long-term debt financing and catalyzed private sector participation through the implementing agency, i.e. Infrastructure Development Company Limited (IDCOL) which substantially contributed to economic growth in the country. The design of the project serves to catalyze commercial financing for public-private partnership (PPP) projects, thereby reducing the pressure of direct financing on the public budget.
| Project Name | Third Public-Private Infrastructure Development Facility | ||||||||||
| Project Number | 42180-016 | ||||||||||
| Country | Bangladesh |
||||||||||
| Project Status | Active | ||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
||||||||||
| Source of Funding / Amount |
|
||||||||||
| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
||||||||||
| Drivers of Change | Gender Equity and Mainstreaming Partnerships Private sector development |
||||||||||
| Sector / Subsector | Finance / Infrastructure finance and investment funds |
||||||||||
| Gender Equity and Mainstreaming | Some gender elements | ||||||||||
| Description | The Third Public-Private Infrastructure Development Facility (PPIDF 3) is a continuation of the work carried out under the Public-Private Infrastructure Development Facility (PPIDF 1) and the Second Public-Private Infrastructure Development Facility (PPIDF 2) in addressing the infrastructure deficiencies in Bangladesh. Through the two earlier interventions, ADB has provided long-term debt financing and catalyzed private sector participation through the implementing agency, i.e. Infrastructure Development Company Limited (IDCOL) which substantially contributed to economic growth in the country. The design of the project serves to catalyze commercial financing for public-private partnership (PPP) projects, thereby reducing the pressure of direct financing on the public budget. An additional objective of the facility is to help provide the rural population and small to medium enterprises with clean and affordable electricity either through grid-connected or off-grid energy efficiency and renewable energy solutions. Solar home systems (SHSs) will not be financed under PPIDF 3 given the market saturation and availability of funding from partner donors. | ||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | A key design element of the proposed Third Public-Private Infrastructure Development Facility (PPIDF 3) is the introduction of the multitranche financing facility (MFF) financial intermediary (FI) lending modality. The MFF-FI modality is particularly well suited for FI interventions which provide long-term funding to public-private partnership (PPP) infrastructure projects. These PPP interventions are typically developed in a phased manner based on project implementation requirements. The MFF modality allows the borrower, Infrastructure Development Company Limited (IDCOL), to onlend financing for subprojects based on readiness criteria including finalization of risk-sharing arrangements, readiness of engineering procurement and construction, and phased release of equity. The disbursement to a subproject can take place through multiple tranches with time-slicing given the typical characteristic of staggering of payments, and thereby providing IDCOL the flexibility to plan cost-effective disbursements of subprojects. | ||||||||||
| Impact | Investments in infrastructure increased (Bangladesh Seventh Five Year Plan, FY2016-FY2020) | ||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Private sector investments in infrastructure, including renewable energy leveraged |
| Progress Toward Outcome | - |
| Implementation Progress | |
| Description of Project Outputs | Available long-term debt financing for infrastructure projects increased Take-out financing for infrastructure projects catalyzed IDCOLs institutional capacity strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 4 subprojects (Notun Bidyut, Summit Communications, KPCL, Robi Axiata) were approved and disbursed. Their amounts are $34 million, $11 million, $50 million, and $47 million respectively. A total of 1.678 million has been disbursed for the subproject USA Agro under L3555. Framework being developed. Framework being developed Framework being developed Framework being developed Framework being developed One subproject (KPCL) approved and $50 million disbursed. |
| Geographical Location | Bangladesh |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | PPIDF 3 is classified category FI for environment, involuntary resettlement, and indigenous peoples. No subproject that is classified category A in any of these three safeguard areas will be considered for financing under the investment program. All subloan agreements will incorporate specific covenants to ensure compliance with ADB's Safeguard Policy Statement (2009).
Infrastructure Development Company Limited (IDCOL) has an environmental and social safeguards framework (ESSF) developed in 2011 with ADB technical support under Public-Private Infrastructure Development Facility (PPIDF). A review in August 2016 to ensure that the ESSF remained consistent with ADB's Safeguard Policy Statement identified areas for strengthening. The associated technical assistance (TA) will therefore help IDCOL enhance ESSF by (i) incorporating changes in the central bank's June 2015 draft guidelines on environmental and social risk management for banks and financial institutions, (ii) streamlining the procedures for assessing and reviewing subprojects, and (iii) making the changes necessary to accommodate the introduction of take-out financing by IDCOL under the Third Public-Private Infrastructure Development Facility (PPIDF 3). IDCOL has an environmental and social policy approved by its board and an environmental and social safeguards management unit with two senior safeguards staff members. Depending on the complexity of subprojects, IDCOL may hire an additional senior staff member to deal with social and gender issues. IDCOL will submit annual reports to ADB on the status of ESSF implementation. |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | Not applicable |
| Procurement | The proposed Third Public- Private Infrastructure Development Facility (PPIDF 3) consists of a $526 million multitranche financing facility (MFF) which will be funded by a regular ordinary capital resources (OCR) loan of $500 million and a concessional OCR loan of $26 million. The funds under the MFF will be made available to Infrastructure Development Company Limited (IDCOL), a fully government-owned infrastructure finance company through the financial intermediary lending modality. IDCOL will use the ADB loan proceeds to provide subloans to sponsors to fund subprojects in the traditional infrastructure sectors such as energy, transport, urban, health, and education. The concessional ordinary capital resources loan will be exclusively used to finance renewable energy subprojects. There will be no direct funding for procurement of goods and services under this facility which could potentially lead to longer and complex implementation considerations. |
| Responsible ADB Officer | Zhang, Dongdong |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SARD |
| Timetable | |
|---|---|
| Concept Clearance | 01 Jul 2016 |
| Fact Finding | 22 Aug 2016 to 24 Aug 2016 |
| MRM | 26 Sep 2016 |
| Approval | 18 Jul 2017 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2020 |
MFF Facility Concept 0100-BAN
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 526.26 | Cumulative Contract Awards | |||
| ADB | 526.00 | - | 0.00 | 0.00 | % |
| Counterpart | 0.26 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
TA 9344-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Jul 2017 | 12 Jul 2018 | 12 Jul 2018 | 31 Mar 2020 | 31 Mar 2021 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 750,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 750,000.00 | 18 Jul 2017 | 149,850.00 |
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.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement for Loan 3554-BAN: Third Public-Private Infrastructure Development Facility - Tranche 1 | Loan Agreement (Ordinary Resources) | Nov 2017 |
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 3555-BAN: Third Public-Private Infrastructure Development Facility - Tranche 1 | Loan Agreement (Ordinary Resources) | Nov 2017 |
| Project Agreement for Third Public-Private Infrastructure Development Facility - Tranche 1 | Project/Program Agreements | Nov 2017 |
| Third Public-Private Infrastructure Development Facility: Report and Recommendation of the President | Reports and Recommendations of the President | Jul 2017 |
| Third Public-Private Infrastructure Development Facility: Facility Administration Manual (As of Board Approval) | Facility Administration Manual | Jul 2017 |
| Third Public-Private Infrastructure Development Facility: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jul 2016 |
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.
| Title | Document Type | Document Date |
|---|---|---|
| Third Public-Private Infrastructure Development Facility: Environmental and Social Safeguards Framework of Infrastructure Development Company Limited | Environment and Social Safeguards Frameworks | Aug 2011 |
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
-
ADB $526 Million Assistance to Further Boost Public-Private Infrastructure in Bangladesh
ADB has approved a $526 million multitranche financing facility to help sustain and increase infrastructure investments in Bangladesh, particularly in financing PPP projects as well as renewable energy interventions.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Capacity Development for Infrastructure Development Company Limited | Firm - Consulting | Closed | 18 Jul 2018 | 16 Aug 2018 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| Capacity Development | Technical Assistance 9344 | 26 Aug 2019 | PRICEWATERHOUSECOOPERS PVT. LTD. (IND) (INDIA) in association with PricewaterhouseCoopers Bangladesh Private Limited (BANGLADESH) | 8-2-624/A/1, 4th Floor Hyderabad, Andhra Pradesh 500 034 India | Ministry of Finance | Consulting Services | 511,820.00 | — |
Procurement Plan
None currently available.