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NDB likely to provide $2b for 8 projects

Mohammad Zakaria
30 May 2023 00:00:00 | Update: 30 May 2023 00:07:39
NDB likely to provide $2b for 8 projects

Bangladesh is expecting about $2 billion loan from the Shanghai-based New Development Bank (NDB) for implementing eight development projects.

The loan will be used to implement projects in various sectors, including clean energy and energy efficiency, transport infrastructure, water and sanitation, environmental protection, social infrastructure and digital infrastructure.

“We have discussed with the Shanghai-based lender to finance eight development projects. They have assured us of providing the loan,” a deputy secretary of the Economic Relations Division (ERD) told The Business Post preferring anonymity.

Hopefully, the first assistance from the NDB will be forthcoming within this fiscal year, he said.

Headed by He Tian, project team leader of Public Sector Department of the NDB, a seven-member delegation of the multilateral development bank recently met ERD officials to discuss about the loan, the official said.

According to ERD officials, NBD is likely to provide $235 million loan for a water supply project of Dhaka Water Supply and Sewerage Authority, $83 million for a water supply project in Rajshahi, $115 million for a 120MW solar power plant at Raipura, $112 million for a power distribution project in the Northern Electricity Supply Company (NESCO) area, and $203 million loan for improving the distribution system in the west zone.

The NDB delegation also discussed financing three projects of the Bridges Division, the construction of Payra, Bishkhali, and Karkhana bridges.

After the World Bank, the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), the NDB is going to be another multilateral lender to Bangladesh, according to the ERD.

The New Development Bank, formerly known as BRICS Development Bank, finances projects and innovates tailored solutions to help build a more inclusive, resilient, and sustainable growth.

The BRICS stands for Brazil, Russia, India, China and South Africa. These countries are the founding members of the NDB.

Bangladesh joined the development bank as a member in September 2021, obtaining around 1 per cent share. The United Arab Emirates and Egypt are also new members of the NDB that started operation in 2015.

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

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

Since its inception, the 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.