The Asian Development Bank (ADB) will loan Bangladesh $315 million to develop the country's infrastructure to help attract foreign investments, an official with the bank said on Monday.
"If Bangladesh can offer proper and smooth infrastructure facilities like roads, uninterrupted power supply and telecommunications then the country will be able to woo more foreign investment," the ADB official, who declined to be named, told Reuters.
The Manila-based bank said Bangladesh must improve its infrastructure to take advantage of foreign direct investments, referring to investment proposals by India's industrial giant Tata Group, Abu Dhabi Group and Asia Energy totalling $5.5 billion.
Tata has offered to invest $2.5 billion in Bangladesh's fertiliser, power and steel sectors while United Arab Emirates' Abu Dhabi Group planned to invest $1 billion in the telecommunications, infrastructure, tourism and pharmaceutical sectors.
London-based Asia Energy Plc. will invest $2 billion to develop the country's north-west Phulbari coal mine project, officials said.
The ADB's loan from its Ordinary Capital Resources (OCR) fund, is refundable in 20 years, including five years of grace period, and carries an annual interest of less than 4.2 percent.
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