Dhaka set to send project proposals to NDB

Bangladesh is planning to send some project proposals to the new multilateral lender New Development Bank (NDB) to seek financing for implementing infrastructure development projects.

“This will be the first time we will send some project proposals to NDB. This time, we may seek funding for two or three projects,” said an official of the Economic Relations Division (ERD).

Bangladesh got the Shanghai-based lender’s membership last year. The official said ERD will send the proposals soon. “We will hold negotiations with NDB afterwards. We hope to receive funding from NDB within this financial year [FY2022-23].”

The Planning Commission has already received some Preliminary Development Project Proposals (PDPP) from different ministries as they are seeking funding from NDB to implement them, a senior official of the Planning Ministry told The Business Post.

The proposals will soon be forwarded to ERD, added the official.

ERD officials said Bangladesh becoming a member of NDB, formerly referred to as the BRICS Development Bank, will open up another door to get foreign assistance to implement different projects.

Before NDB, Bangladesh has been getting loans from multilateral lenders World Bank, Asian Development Bank and the Asian Infrastructure Investment Bank, according to ERD.

The country has already paid its first instalment of subscription and completed all legal and official formalities with NDB.

In September last year, Bangladesh obtained around 1 per cent share in NDB, which has been established by the BRICS member countries — Brazil, Russia, India, China and South Africa.

Operating since 2015, NDB offered Bangladesh its sixth membership in 2021. NDB also offered memberships to Egypt, the United Arab Emirates and Uruguay.

Bangladesh paid its first instalment worth $15 million in March this year, out of its $942 million worth of shares in the bank, officials said.

Dhaka will have to pay a total of $188 million in seven incremental instalments annually as a payable subscription, while the remaining $754 million will be considered a “callable fee.” It will not have to pay it at the moment, ERD officials said.

Since its inception, NDB has provided about $32 billion in loan assistance to its member countries for 80 different projects related to physical and social infrastructure and urban development.