ADB to finance Bangladesh infrastructure projects

Dhaka, Oct 21 (IANS) The Asian Development Bank (ADB) will provide a $110-million loan for investment in private-sector infrastructure projects in Bangladesh, including renewable energy, the bank said Monday.

"Low investment in infrastructure is holding back development and economic growth in Bangladesh. Building more power stations, roads, and water networks would help people in rural areas and draw more foreign direct investment," said Peter Marro, principal financial specialist in ADB's south Asia department, Xinhua reported.

The government has been the main source of infrastructure spending in Bangladesh, but cannot provide finance alone, according to the bank statement.

ADB will provide $100 million credit for investment in projects such as power generation, water and sanitation, transportation, and information technology. It will also provide $10 million to expand off-grid solar home systems for households and small businesses in remote areas, the statement said.

Private investors, meanwhile, struggle to get long-term finance from local banks. Electricity shortages cause an annual estimated loss of 2 percent of gross domestic product (GDP), and poor transport and communications system also hold back the economy, it added.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.

Matches