Bangladesh: Third Public-Private Infrastructure Development Facility-Tranche 2

Sovereign (Public) Project | 42180-019

The Third Public-Private Infrastructure Development Facility (PPIDF 3), a financial intermediary (FI) multitranche financing facility (MFF), is a continuation of the Public-Private Infrastructure Development Facility and the Second Public-Private Infrastructure Development Facility addressing the infrastructure deficiencies in Bangladesh. The two earlier interventions provided long-term debt financing and catalyzed private sector participation through the implementing agency - Infrastructure Development Company Limited (IDCOL), which finances public-private partnership (PPP) projects reducing the pressure of direct financing on the public budget.

Project Name Third Public-Private Infrastructure Development Facility-Tranche 2
Project Number 42180-019
Country Bangladesh
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Third Public-Private Infrastructure Development Facility-Tranche 2
Ordinary capital resources US$ 250.00 million
concessional ordinary capital resources lending / Asian Development Fund US$ 16.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
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), a financial intermediary (FI) multitranche financing facility (MFF), is a continuation of the Public-Private Infrastructure Development Facility and the Second Public-Private Infrastructure Development Facility addressing the infrastructure deficiencies in Bangladesh. The two earlier interventions provided long-term debt financing and catalyzed private sector participation through the implementing agency - Infrastructure Development Company Limited (IDCOL), which finances public-private partnership (PPP) projects reducing the pressure of direct financing on the public budget.

The PPIDF3 will help catalyze commercial financing through IDCOL-supported infrastructure subprojects with the value addition of supporting private sector development. The project expects to catalyze $789 million in private sector investments with at least eight subprojects through the regular OCR loan, and at least two renewable energy subprojects through the concessional OCR loan. The project also seeks to strengthen the institutional capacity of IDCOL to fulfill its mission as a flagship financial institution supporting PPP finance in the infrastructure sector. Tranche 2 will fund at least 6 infrastructure subprojects (including renewable energy and energy efficiency) amounting to (a target of) $250 million.

Project Rationale and Linkage to Country/Regional Strategy
Impact Investments in infrastructure increased (Bangladesh's Eighth Five-Year Plan, FY2021-FY2025)
Outcome Private Sector investments in infrastructure, including the financing of renewable energy and energy efficiency facilities leveraged.
Outputs

Available long-term debt financing for infrastructure projects increased

Take-out financing for infrastructure projects catalyzed

IDCOL's institutional capacity strengthened

Geographical Location
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Not applicable
During Project Implementation Not applicable
Responsible ADB Officer Zhang, Dongdong
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 14 Sep 2021
Approval -
Last Review Mission -
Last PDS Update 15 Sep 2017

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Procurement Plan

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