PM directs to initiate process to secure loans from NDB
Prime Minister Sheikh Hasina yesterday directed the concerned departments to start the process of securing loans from the New Development Bank (NDB).
Talking to reporters at the planning ministry, Planning Minister MA Mannan said the premier made the comments while chairing a meeting of the Executive Committee of the National Economic Council (Ecnec).
In 2021, Bangladesh became a member of the NDB, becoming the first nation to be admitted into the institution after it was established in 2015 by the BRICS, an alliance of Brazil, Russia, India, China and South Africa.
"The NDB has opened up a new window for Bangladesh as the country would now be able to take loans from the bank apart from other lenders like World Bank, Asian Development Bank, AIIB and IsDB," state-run news agency BSS quoted the prime minister as saying.
"This is the sign of our enhanced capacity and now we'll be able to take loans from where we'll get better outcomes through negotiations."
On Monday, the cabinet approved the "New Development Bank Act 2023".
In 2021, Bangladesh became a member of the NDB, becoming the first nation to be admitted into the institution after it was established in 2015 by the BRICS
On the same day, Cabinet Secretary Md Mahbub Hossain said when a development partner issues a loan, it needs legal coverage.
The World Bank, the ADB and other lenders have also had the same legal coverage.
Bangladesh is at the final stage of borrowing $800 million from the NDB for two projects, said Hossain.
The projects are the Dhaka-Narayanganj Gas Pipeline project and the Water Supply Project in the capital's Basila area.
Bangladesh has already agreed to pay $188.4 million in paid-up capital for being a member of the new international lender. Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock.
As a member, the country's total share in the bank will stand at $942 million. Of the sum, $753 million will be in the form of authorised capital.
Bangladesh will have to pay $188.4 million in seven instalments in seven years. And it will be able to contribute $753 million through the purchase of bonds of the bank later.
Right now, the country's share in the bank is 1.84 percent.
The NDB has an authorised capital of $100 billion, which is open for subscription by members of the United Nations.
Since its inception, the NDB has provided about $30 billion in loan assistance to member countries for 80 different projects related to physical and social infrastructure and urban development.
The Ecnec yesterday approved 20 projects involving Tk 14,077.86 crore. Of them, 13 are new and seven are revised.
Of the project cost, Tk 12,409.44 crore will come from the government, Tk 619.38 crore from implementing agencies and the rest Tk 1,049.04 crore as project assistance.
The government has taken a project to construct a new building for Bagerhat Collectorate at a cost of Tk 130.20 crore. Other projects include the Tk 603.80 crore Modernisation of Hossain Shaheed Suhrawardy Children's Park.
A Tk 310 crore project has been approved to connect the 300-feet road in Purbachal with Madani Avenue.
The Ecnec meeting also approved the proposals that sought time extension for five projects without any revision to their costs.