fbpx 42180-018: Third Public-Private Infrastructure Development Facility-Tranche 1 | Asian Development Bank

Bangladesh: Third Public-Private Infrastructure Development Facility-Tranche 1

Sovereign (Public) Project | 42180-018 Status: Active

The proposed 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 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 catalyzing 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-Tranche 1
Project Number 42180-018
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3554-BAN: Third Public-Private Infrastructure Development Facility-Tranche 1
Ordinary capital resources US$ 250.00 million
Loan 3555-BAN: Third Public-Private Infrastructure Development Facility-Tranche 1
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
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 proposed 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 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 catalyzing 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 (PPIDF3) 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 2016 -2020)
Project Outcome
Description of Outcome Private sector investments in infrastructure, including RE 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

IDCOL's institutional capacity strengthened

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

As of July 2020, a total amount of $148.5 million has been committed and $124.8 million disbursed under 4 subprojects.

Framework being developed.

Framework being developed.

Framework being developed.

Framework being developed.

Framework being developed.

One eligible subproject, Kushiara Power Company Limited (KPCL) has been refinanced by IDCOL. Another subproject, Robi Axiata is currently under review.

Geographical Location Dhaka
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects ADB is reviewing every subproject and will determine the environment categorization accordingly. If triggering category A, the proposed subproject will not be qualified for ADB financing.
Involuntary Resettlement ADB is reviewing every subproject and will determine the IR categorization accordingly. If triggering category A, the proposed subproject will not be qualified for ADB financing.
Indigenous Peoples ADB is reviewing every subproject and will determine the IP categorization accordingly. If triggering category A, the proposed subproject will not be qualified for ADB financing.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services not applicable
Procurement There will be no procurement directly financed under the facility since procurement will be undertaken by the subproject sponsors in accordance with the procedures established by private sector or commercial practices acceptable to ADB and must align with the core principles of ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Zhang, Dongdong
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Finance
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 26 Sep 2016
Approval 11 Aug 2017
Last Review Mission -
Last PDS Update 30 Sep 2020

Loan 3554-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Aug 2017 19 Nov 2017 14 May 2018 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 510.00 Cumulative Contract Awards
ADB 250.00 11 Aug 2017 170.38 0.00 68%
Counterpart 260.00 Cumulative Disbursements
Cofinancing 0.00 11 Aug 2017 170.38 0.00 68%

Loan 3555-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Aug 2017 19 Nov 2017 14 May 2018 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 140.00 Cumulative Contract Awards
ADB 10.00 11 Aug 2017 1.68 0.00 16%
Counterpart 130.00 Cumulative Disbursements
Cofinancing 0.00 11 Aug 2017 1.68 0.00 16%

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.

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.

None currently available.

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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.