ADFD funds projects in Bangladesh worth $190.6m
Abu Dhabi Fund for Development (ADFD) has provided the Bangladeshi government with grants and concessionary loans intended to finance nine development projects
Abu Dhabi Fund for Development (ADFD) has reported providing the government in Bangladesh financial support worth $190.6m (AED700m).
ADFD noted that the financing it has provided to the Bangladeshi government came in the form of grants and concessionary loans intended to fund nine development projects for different sectors, including industry, energy, and infrastructure.
Mohammed Saif Al Suwaidi, ADFD’s director general, underscored his organisation’s keenness to support the Bangladeshi government in its efforts to promote development through financing projects that support infrastructure development, which he said is a prerequisite for growth and social prosperity.
Al Suwaidi said that ADFD’s development activities in Bangladesh articulated its crucial role in supporting economic and social development across developing countries, UAE state news agency, WAM, reported.
ADFD reportedly holds a 60% stake in the UAE-Bangladesh Investment Company Limited (UBICO), which was established in 1987.
According to WAM, the investment company aims to support the economic and social development of Bangladesh by providing concessionary loans to bolster sustainable projects, thus alleviating living standards and creating job opportunities.
ADFD is said to have allocated $30m (AED110m) in 2013 to support the development of the South Asia Road Connectivity Project. Road and transportation infrastructure works have been underway since March 2016 and are now 22% complete.
Scheduled for completion at the end of this year, the project aims to link Bangladesh with several land-locked countries, such as Nepal, Bhutan, and the north-eastern parts of India. The road is expected to help Bangladesh meet the increasing volume of trade while facilitating easy movement of merchandise.
ADFD also funded the $31.3m (AED115m) expansion and modernisation of the Sikalbaha power station, which is already 90% completed. The aim of the project is to strengthen and stabilise the national grid and meet the electricity demand of the Dhaka Metropolitan Area, which is regarded as a hub for industry, commerce, services, and business activities in Bangladesh.
The funding covered the installation of 225MW generators, which use natural gas as primary fuel and heavy fuel as backup. The power station also includes two gas turbines with a capacity to produce 75MW electricity; a steam generator; and a 75MW steam turbine. The power plant is expected to become operational by the end of this year.