Dhaka to seek $3b from AIIB for infra projects

The government will soon seek loans worth nearly $3 billion from China-led Asian Infrastructure Investment Bank for around two dozens of large and medium projects, a senior official of the finance ministry said.
Projects related to power and energy, infrastructure and information technology will get priority for low-cost loans from the newly-established Beijing-based multilateral lending agency.
‘A good number of projects will soon be sent to AIIB for finances. Projects related to power and energy will get priority,’ Economic Relations Division secretary Mesbah Uddin Ahmed told New Age.
He said rates of interest of the AIIB loans could be somewhat more than the rates Bangladesh enjoyed for credits from the World Bank and the Asian Development Bank, but were lower than those of the foreign commercial loans.
The AIIB was launched on January 16 in Beijing of China.
‘While the amount of subscription to own 0.67 per cent share by Bangladesh in the AIIB stands at $660.50 million for Bangladesh as paid-up capital, set for each founding members on the basis of their GDP sizes, the country, however, has to pay only $132.10 million as paid-up capital in five installments in the next five years,’ state minister for finance and planning MA Mannan told New Age.
The subscription amount has to be paid by December 31 this year, sources said.
Officials concerned said they were busy sorting out projects against which finances would be sought by the next month.  The government’s different ministries have so far submitted nearly 50 projects for AIIB finance.
‘Initially, we will send about two dozens of projects involving $3 billion. The projects must be approved by the highest authority of the government,’ a senior ERD official said.
The authorised capital of AIIB is $100 billion, while the paid-up capital is $20 billion to be subscribed by member countries based on their number of shares in the bank.
The finance ministry official sees ample scope to secure low-cost fund to kick-start its much needed large infrastructure projects such as on power, energy and physical infrastructure from the 57-member infrastructure bank.
Mesbah said the AIIB would open a new window for low-cost loans for Bangladesh economy.
The ERD officials believe the credit from the bank would not entail conditions similar to the WB or other multilateral lending bodies, and help faster the economic progress of the country.

News Courtesy: www.newagebd.net