New Development Bank open to financing projects in Bangladesh

The New Development Bank (NDB) may consider financing various development projects in Bangladesh depending on whether the country has sufficient execution capacity, according to an official of the multilateral lender.

"There are 11 projects in the country that could be considered for financing at present," Vladimir Kazbekov, vice president of the NDB, told The Daily Star in an interview on Sunday.

"Given that we just started, it cannot be said exactly how much support we can give. However, funds are available for projects that are ready for implementation," he added.

And after identifying the projects that are viable for financing, the NDB will build a robust two-year pipeline to ensure consistent support for the next three to five years.

Besides, loans for project implementation will be provided in the currency of choice between the US dollar, euros and Chinese yuan at attractive rates.

The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS).

The NDB is currently working on providing $700 million as financing for two projects in Bangladesh.

The first aims to ensure smooth water supply across the capital city while the other aims to improve the existing gas network in Dhaka and Narayanganj.

Both projects are in line with the strategic development priorities of Bangladesh and the NDB.

In parallel, the NDB is working on non-sovereign transactions with private sector clients and large commercial banks to support private sector development in the country, Kazbekov said.

It is expected that the financing for both projects will be approved before March this year, he added.

Kazbekov arrived in Dhaka on Saturday night to meet with the finance minister, senior officials of the bridges division and other departments of the government to discuss areas of potential project financing.

Regarding Bangladesh's economy, he said it is growing fast with good long-term economic prospects.

But 2023 was obviously a difficult year due to supply disruptions, with price spikes for fuel and other commodities leading to inflationary pressure.

To further develop the economy, it is important to continue investments, particularly in physical and social infrastructure, he said.

At the same time, it is crucial to strengthen macroeconomic stability and minimise exchange rate volatility, he added.

Kazbekov informed that the NDB does not engage in policy-based lending or provide funds for budget support as it mainly focuses on aiding infrastructure development.

Established in 2015, Bangladesh is a member of the NDB.