ADB to scale up operations

The Asian Development Bank (ADB) will scale up its operations by 50 percent for private sector development by 2020.
Currently, ADB provides three types of financial support -- grant, loan and technical assistance -- both to private and public sectors.
The proposed move will ensure equal support to the public and private sectors. Currently, around 15 percent of the total fund of the ADB goes to the private sector while the remaining 85 percent is spent on the government-sponsored projects.
The Manila-based multilateral donor agency is set to begin work on it because the government can hardly spend the money for the poor implementation of different projects.
The ADB has taken the initiative to increase the flow of fund to the private sector in all its operation areas.
“The ADB has recently shifted a policy to scale up the private sector development in all its operation areas,” said MM Zillur Rahman, senior financial sector officer of ADB, yesterday.
It has a plan to disburse up to 50 percent of its fund for the private sector as per ADB's 2020 strategy, he added.
The development agency has already undertaken a study to analyse the overall macroeconomic policy, legal and regulatory environment for the private sector development in Bangladesh and will finalise the modality of fund disbursement, based on the study findings, said M Fouzul Kabir Khan, who is conducting the study as the team leader.
Khan spoke at a consultation meeting on Private Sector Assessment Study, co-orgainsed by the Dhaka Chamber of Commerce and Industry (DCCI) and Keystone Business Support Company, which is conducting the study on behalf of ADB in Dhaka.
While moderating the session, Asif Ibrahim, president of DCCI, urged ADB to select 60-70 companies in Bangladesh and give them loans on a 6-7 percent interest rate.
He also said businessmen want to invest further but are constrained by the high rates of interest of project loans given by banks.
DCCI Senior Vice President TIM Nurul Kabir urged ADB to come forward for the development of IT and skill development of the sector.
The discussants called upon ADB to work for the development of agriculture in Bangladesh. They also asked the government to make investment-friendly policies and ensure reduced interest rates.