Investment Promotion & Financing Facility II (IPFF II) Project Cell  

Name & Designation Telephone Email Fax
Dr. Abul Kalam Azad, Ph.D.Executive Director 880-2-9550187880-2-9530442
Rathin Kumar PaulIn-Charge880-2-9530230--

Investment Promotion and Financing Facility II (IPFF II) Project has been taken up by Government of Bangladesh (with financial support of the World Bank) with a view to creating sustainable platform for long-term financing in infrastructure and strengthening skills and abilities of the private sector to fill the substantial infrastructure gap in Bangladesh. The IPFF II Project Cell of Bangladesh Bank (BB) will act as the Project Implementation Unit (PIU) for IPFF II. The estimated cost of IPFF II Project is USD 416.70 million and project tenure is 5 years, i.e. from July 2017 to June 2022.

Under Long-Term Infrastructure Financing Component, IPFF II Project Cell will provide long-term funds to participating financial institutions (PFIs) for on-lending and investment in support of long-term infrastructure investments by private sector investors/companies. Whereas, the Technical Assistance Component will support infrastructure investment capacity building. In addition to leveraging IDA and GoB resources through direct financing, IPFF II will support crowding in more market resources through innovative financing instruments.

IPFF II financing can be extended to the following sectors or subsectors: (a) power generation, transmission, distribution, renewable energy, and services; (b) port development (sea, river, and land) including inland container terminals, inland container depots, and other services; (c) environmental, industrial, and solid waste management projects; (d) highways and expressways including mass-transit, bridges, tunnels, flyovers, interchanges, city roads, bus terminals, commercial car parking, and so on; (e) airports, terminals, and related aviation facilities; (f) water supply and distribution, sewerage, and drainage; (g) industrial estates and parks development; (h) ICT; and (i) the social sector including health and education.

To avail IPFF II Facility Loan, the investment sponsor will typically bring 25 percent or more of the total sub-project cost as equity. For an individual infrastructure project, IPFF II will finance no more than 50 percent of the total project cost and no more than 20 percent of the total IPFF II Long-Term Infrastructure Financing component. The rest of the total financing will require to be financed by the PFI alone or, in syndication, with other financial institutions. PFIs will be selected based on pre-set eligibility criteria, mentioned in the project’s Operations Manual. All financing to private sector sponsors will have maturities of 8 – 20 years including grace period of maximum 3 years. The interest rate for USD and BDT financing will be tagged to 10 year swap rate/12-month Libor and 364-day Treasury-Bill yield respectively.