The World Bank (WB) has approved US $120 million credit to support private sector development in Bangladesh, reports BSS.
The Bank approved the concessional IDA (International Development Association) credit for the ‘Bangladesh Private Sector Development Support Project’ at a meeting yesterday at its headquarters in Washington DC, a WB press release said here today.
The project will facilitate investment in growth centers in the emerging manufacturing and services sectors of the economy with the aim of generating employment.
The project will increase the capacity of government institutions in the development of economic zones and provide financing for necessary infrastructure in economic zones starting with the Kaliakoir Hi-Tech Park and will invest in up to two more economic zones.
In addition, it will create opportunities for cooperation and knowledge sharing between enterprises within the economic zones and their suppliers by providing training and supporting linkages between firms.
The project would also benefit from approximately US$17 million of funding from the UK Department for International Development (DFID), mainly for technical assistance and capacity building for the Government of Bangladesh zone development partners.
The project will also address key constraints to growth including access to serviced land, cumbersome procedures, access to skilled labor, and access to finance.
The Bank approved the concessional IDA (International Development Association) credit for the ‘Bangladesh Private Sector Development Support Project’ at a meeting yesterday at its headquarters in Washington DC, a WB press release said here today.
The project will facilitate investment in growth centers in the emerging manufacturing and services sectors of the economy with the aim of generating employment.
The project will increase the capacity of government institutions in the development of economic zones and provide financing for necessary infrastructure in economic zones starting with the Kaliakoir Hi-Tech Park and will invest in up to two more economic zones.
In addition, it will create opportunities for cooperation and knowledge sharing between enterprises within the economic zones and their suppliers by providing training and supporting linkages between firms.
The project would also benefit from approximately US$17 million of funding from the UK Department for International Development (DFID), mainly for technical assistance and capacity building for the Government of Bangladesh zone development partners.
The project will also address key constraints to growth including access to serviced land, cumbersome procedures, access to skilled labor, and access to finance.
“Creating productive employment for the estimated two million new labor entrants every year will largely depend on creating an environment conducive to private sector investment”, said World Bank Country Director Ellen Goldstein.
“The new locations for economic zones and enhanced policy framework will catalyze private investment in Bangladesh by increasing capacity and reducing constraints to private sector development.” said Michael Wong, Team Leader for the project.
The credit from the IDA, the WB’s concessional lending arm, has 40-year maturity, including a 10-year grace period; it carries a service charge of 0.75 percent.
-The News Today
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