The Asian Development Bank (ADB) has approved a $100 million loan to support the development of infrastructure in Bangladesh’s private sector. This funding aims to enhance the capacity of local financial units to invest in critical infrastructure projects.

In a statement released on Monday, December 9, ADB’s Dhaka office highlighted that the loan would facilitate public-private partnerships (PPPs) in addressing the country's infrastructure challenges. Bangladesh, currently navigating a transformative phase, faces significant hurdles in infrastructure development due to limited public resources and implementation constraints.

The statement further noted that one of the primary barriers to infrastructure investment is the scarcity of long-term funding in the local market. By providing long-term financing to the Bangladesh Infrastructure Finance Fund Limited (BIFFL), the ADB initiative seeks to bridge this gap and enable the completion of key infrastructure projects crucial for accelerating economic growth.

The financing is expected to strengthen BIFFL’s capacity to channel additional resources into private-sector investments. The initiative will also attract international sponsors and foreign direct investment, introducing advanced technologies into Bangladesh’s infrastructure landscape.

ADB’s Country Director for Bangladesh, Edimon Ginting, remarked that this project would propel private-sector financing forward, alleviating the pressure on public funding for infrastructure development. He emphasized that the initiative would help address existing gaps while creating new employment opportunities across various sectors.

The loan program places a strong emphasis on promoting sustainable private investments through PPPs, with particular attention to gender equality and climate change adaptation. It also aims to enhance the financial and institutional capabilities of BIFFL, enabling it to support long-term infrastructure development in a more effective and sustainable manner.

Through this strategic partnership, ADB reaffirms its commitment to advancing Bangladesh’s infrastructure capabilities, supporting economic resilience, and fostering sustainable growth.