Financing >> Investment Promotion and Financing Facility (IPFF)

IPFF is a project in which Bangladesh Bank is the executing agency, created mainly for lending to infrastructure projects in the private sector. The World Bank (WB) initiated the project and approved approximately US$ 50.0 million equivalent fund from IDA to introduce longer term financing for private sector led infrastructure initiatives within the Public Private Partnership (PPP) framework. The GOB, side by side will co-finance approximately US$ 10 million.

IPFF does not provide loans directly to the private investors. Rather the Bank provides the loan to Bangladesh Bank (BB) to whom any of the Participating Financial Institution (PFI) may seek a loan, upon request of private investor to the PFI for such loan.

BB upon receiving request from the private investor makes an application to the facility for funding. BB considers the application based on the operational directives of the facility and disburses the fund to the PFI. The PFI then extends the loan to the private investor from the loan it received from the facility. The following figure shows the implementation model of IPFF: