Bangladesh Bank (BB) is set to begin with the second phase of financing different infrastructure projects under the Investment Promotion and Financing Facility (IPFF) Project, responding to huge demand.

The second phase financing will be worth about $300 million in infrastructure projects. Of the amount, the World Bank will provide $250 million. In the first phase, $57.5 million has been provided.

Finance Minister AMA Muhith launched the second phase of the IPFF project at a function at Dhaka Sheraton Hotel yesterday.

The first phase financed seven power projects which are now generating 178 megawatts of electricity.

The seven power plants were financed through Dutch-Bangla Bank Ltd, Dhaka Bank, Eastern Bank, National Credit and Commerce Bank, Prime Bank, Brac Bank, Trust Bank, Mutual Trust Bank, City Bank and seven non-bank financial institutions.

BB Governor Atiur Rahman said the second phase will finance a wider range of physical infrastructure projects other than power generation units.

Lauding the role of WB in promoting development efforts, Rahman said: “We are looking forward to further support and assistance in BB's efforts to bring into financial markets newer modes of mobilising long-term savings for long-term project financing."

In the sixth five-year-plan, the government has set a target of investing $13 trillion, of which $3 trillion investment will be made through the public sector, Muhith said.

He also said the $10 trillion to be invested through the private sector is a big challenge. The projects will help achieve the investment target, he said. Besides, Muhith said, the government is trying to stabilise the stockmarket to mobilise future investment.

News: The Daily Star/ Bangladesh/23- Feb-2011