PPPA inks financing MoU with 14 banks, NBFIs

Staff Correspondent | Published: 23:22, Nov 03,2016

 
 

Finance minister AMA Muhith speaks at the memorandum of understanding signing ceremony organised by the Public Private Partnership Authority at the Sonargaon Hotel in the capital on Thursday. Principal secretary to the prime minister Abul Kalam Azad and PPPA chief executive officer Syed Afsor H Uddin were present. — New Age photo

PPP projects will get momentum: Muhith

Finance minister Abul Maal Abdul Muhith on Thursday expressed hope that implementation of infrastructure projects under the public private partnership would get momentum after the launching of a PPP financing partnership programme with 14 financial institutions.
He was speaking at the memorandum of understanding signing ceremony organised by the PPP Authority at the Pan Pacific Sonargaon Dhaka hotel in the capital.
At the programme, the PPPA singed separate MoUs with 14 banks and non-banking financial institutions aiming to ensure easy access to financing for the PPP projects and shorten the timeframe for getting access to finance by the investors.
‘The financing crisis for PPP projects will end and the sail of PPP projects will swell out as banks and NBFIs have come forward in this regard,’ Muhith said.
He said it was said that PPP projects were not getting momentum due to financing crisis and hopefully the crisis would end in the coming days.
PPPA chief executive officer Syed Afsor H Uddin and CEOs and managing directors of banks and NBFIs concerned singed the MoU documents.
The banks and NBFIs are: AB Bank, BIFFL, BRAC EPL Investments Ltd, City Bank Capital, Dhaka Bank, Green Delta Capital Ltd, IDLC Finance Ltd, IDCOL, IIDFC, Modhumoti Bank, Mutual Trust Bank, Riverstone Capital Ltd, City Bank and Trust Bank.
Muhith also said the financing partnership programme might also play a significant role in attracting private investment from both domestic and foreign direct investors.
‘Private investment has not increased despite numerous efforts of the government. It now seems to me that my distress will end as the government is getting many FDI proposals involving huge amount of investment,’ he said.
A foreign company made a proposal to provide full funding in setting up Dhaka-Payra railway which is now under consideration, the finance minister added.
Principal secretary to the prime minister Abul Kalam Azad said the PPPA would share the details information and documents of PPP projects at the initial stage of development with banks and NBFIs so that they can take proper decision on investment in the projects.
Terming the land acquisition as the biggest problem for investment in the country, he said implementation of the special economic zones would eliminate the crisis.
The government is also working on amending the land acquisition act which will be placed to the cabinet for its approval, Azad said.
Growing demand for electricity and shortage of skilled manpower are two other constraints for attracting investment, he added.
Association of Bankers Bangladesh chairman Anis A Khan said the (Thursday’s) programme would build up investors’ confidence as the investors will have financiers ready to finance the projects.
He suggested that financiers be given incentives as the returns of investment in infrastructure projects take long time.
Bank and Financial Institutions Division secretary Eunusur Rahman and PPPA chief executive officer Syed Afsor H Uddin also spoke at the programme. 

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