ID :
13636
Thu, 07/24/2008 - 10:36
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https://oananews.org//node/13636
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WB supports financing small power plants
DHAKA, Bangladesh, July 24 (BSS) - Bangladesh Bank signed a Facility Access Agreement with NCC Bank Limited today whereby the NCC Bank is borrowing US$ 24 million from the World Bank supported Investment Promotion and Financing Facility (IPFF) Project forfinancing three small power plants (SPPs).
The plants would be set up by Doreen Power Generations andSystems Limited.
The three SPPs are expected to add 66MW of power to thenational grid between October and December this year.
Md Abul Quasem, IPFF Project Director and Executive Director of Bangladesh Bank, and Md Nurul Amin, Managing Director of NCC Bank Limited, signed the agreement at the Bangladesh Bank. Senior officials from the World Bank, Bangladesh Bank and NCC Bank werepresent.
Earlier, the World Bank approved US$ 50.0 million equivalent IPFF Project to introduce longer term financing for private sector led infrastructure initiatives within the Public PrivatePartnership (PPP) framework.
"Due to the ongoing preference for shorter term financing and with limited capacity, the local financial institutions are not yet keen to finance infrastructure projects for a longer term like 10-15 years," said Xian Zhu, the World Bank CountryDirector.
"The IPFF would enhance capacity of the local financial sector and bolster their ability for financing the much needed PPP ventures in infrastructure sector." Local financial institutions can apply for IPFF fund through Bangladesh Bank. "As the country is facing acute power crisis, IPFF so far has received funding application for six small power plants to be set up by private sector entrepreneurs," said AKMAbdullah, Financial Sector Specialist, World Bank.
"Infrastructure projects from other sectors like roads, bridges, flyovers, container terminals, telecommunication, wastemanagement etc. are also eligible for IPFF fund," he said.
The IPFF project cell in Bangladesh Bank provides all necessary supports for the financial institutions and also for the private sector entrepreneurs in handling the projectmodalities and in application processing.
BSS/1330gmt
The plants would be set up by Doreen Power Generations andSystems Limited.
The three SPPs are expected to add 66MW of power to thenational grid between October and December this year.
Md Abul Quasem, IPFF Project Director and Executive Director of Bangladesh Bank, and Md Nurul Amin, Managing Director of NCC Bank Limited, signed the agreement at the Bangladesh Bank. Senior officials from the World Bank, Bangladesh Bank and NCC Bank werepresent.
Earlier, the World Bank approved US$ 50.0 million equivalent IPFF Project to introduce longer term financing for private sector led infrastructure initiatives within the Public PrivatePartnership (PPP) framework.
"Due to the ongoing preference for shorter term financing and with limited capacity, the local financial institutions are not yet keen to finance infrastructure projects for a longer term like 10-15 years," said Xian Zhu, the World Bank CountryDirector.
"The IPFF would enhance capacity of the local financial sector and bolster their ability for financing the much needed PPP ventures in infrastructure sector." Local financial institutions can apply for IPFF fund through Bangladesh Bank. "As the country is facing acute power crisis, IPFF so far has received funding application for six small power plants to be set up by private sector entrepreneurs," said AKMAbdullah, Financial Sector Specialist, World Bank.
"Infrastructure projects from other sectors like roads, bridges, flyovers, container terminals, telecommunication, wastemanagement etc. are also eligible for IPFF fund," he said.
The IPFF project cell in Bangladesh Bank provides all necessary supports for the financial institutions and also for the private sector entrepreneurs in handling the projectmodalities and in application processing.
BSS/1330gmt
