Idcol secures $526m credit from ADB
Infrastructure Development Company Ltd (Idcol) is set to receive $526 million (Tk 4,252 crore) in loans from the Asian Development Bank to finance private sector infrastructure projects in the country.
The state-run development financial institution involved in private sector energy and infrastructure financing has received approval for its third credit line from the Manila-based lender recently.
The Third Public-Private Infrastructure Development Facility (PPIDF 3) will be used to finance the development of private sector infrastructure projects envisaged under the Seventh Five-Year Plan.
Under the PPIDF 3 facility, the ADB will provide $500 million market-based loan and $26 million concessional loan. Idcol will lend the money to eligible private sector infrastructure projects.
The ADB will also provide $750,000 as technical assistance to strengthen the capacity of Idcol.
Idcol previously received two credit lines from the ADB: $165 million under PPIDF 1 and $110 million under PPIDF 2.
Six projects from the power sector with an aggregate capacity of 750-megawatt and the first private sector river port in Bangladesh have so far been financed using the credit.
Idcol has targeted to invest an additional $1 billion by 2020 in the infrastructure sector to boost private sector participation and complement the government's vision to help Bangladesh become a middle income country by 2021.
The Economic Relations Division and the Finance Division will act as the executing agency and the financial management agency respectively for the new loan, while Idcol will act as the implementing agency.
The loan is expected to be effective in the last quarter of 2017.