Bangladesh Bank: Investment Promotion and Financing Facility Project II
The facility provides long-term financing to private companies to undertake diverse infrastructure projects across Bangladesh—spanning grid and off-grid power, transmission and distribution upgrades, renewable energy assets, and essential service infrastructure. By addressing the scarcity of long-tenor local financing, the programme seeks to unlock bankable projects, reduce financing costs, and accelerate private participation in climate-aligned, resilient infrastructure.
Five-Axis Transformation
Data
Standardised project screening, environmental and social due diligence datasets, and portfolio analytics to track pipeline quality, construction progress, and operational performance.
Capacity Building / Technical Assistance
Support for lenders and sponsors on project preparation, E&S risk management, procurement, contract bankability (PPAs, EPC/O&M), and financial structuring; training for PFIs on long-term asset–liability management.
Technology / Machinery
Financing coverage for efficient generation technologies, grid modernisation (including automation and smart systems), renewable energy (utility-scale and distributed), and associated storage or ancillary services where applicable.
Finance
Long-tenor credit lines channelled through participating financial institutions, with options for risk-sharing and credit enhancement to crowd-in private capital; improved ALM and pricing that reflect project lifecycles.
Policy
Alignment with sector regulations and tariff frameworks; reinforcement of E&S standards and disclosure; facilitation of transparent, competitive procurement and model contractual provisions to improve bankability.
Strategic Impact & Value Proposition
De-risked Private Investment
Bridges the tenor and risk gap that typically constrains private infrastructure, catalysing larger volumes of commercial finance.
Reliability, Access, and Decarbonisation
Upgrades to transmission/distribution and new renewable capacity enhance service reliability, expand access, and reduce emissions intensity.
Lower Lifecycle Costs
Better terms and disciplined preparation reduce cost of capital and whole-life asset costs, improving affordability for end-users.
Market Development
Strengthens local financial intermediation in project finance, builds replicable structures, and deepens capital-market readiness.
Resilience & Compliance
Mainstreamed environmental and social standards, climate-risk screening, and resilient design improve long-term asset performance and safeguard communities.