Riyadh: Energy Infrastructure in Bangladesh Receives $1.4 Billion Boost
In a major development, the Jeddah-based International Islamic Trade Finance Corp. (ITFC) has announced a plan to inject $1.4 billion into Bangladesh’s economy, signaling a significant advancement in the country’s energy infrastructure.
Strategic Agreement with Bangladesh Petroleum Corp.
ITFC, a member of the Islamic Development Bank Group, has entered into a strategic agreement with Bangladesh Petroleum Corp. aimed at enhancing the nation’s energy resilience. This move comes after a visit to the country in February by Hani Sonbol, CEO of the corporation and acting chief of the Islamic Corp. for the Development of the Private Sector.
Supporting Energy Security Initiatives
During his visit, Sonbol met with Bangladesh’s Prime Minister, Sheikh Hasina Wajed, in Dhaka to discuss ITFC’s commitment to supporting the country’s energy security initiatives. The recent conclusion of a $2.1 billion financing plan for 2024-2025 highlights the corporation’s dedication to Bangladesh.
Key Developmental Partner to Bangladesh
Sonbol emphasized ITFC’s role as a key developmental partner to Bangladesh, with over $22 billion in financing approved to date. The corporation’s involvement extends to trade development programs, technical assistance, and support to local banks, crucial in meeting the country’s growing demand for Islamic financing.
Enhancing Energy Security and Private Sector Growth
Discussions with Abul Hassan Ali, finance minister and governor of the Islamic Development Bank for Bangladesh, focused on enhancing energy security and fostering private sector growth through collaborative efforts. ITFC’s commitment to Bangladesh’s energy infrastructure was further solidified in a meeting with Bangladesh’s State Minister of Power, Energy, and Mineral Resource Nasrul Hamid.
Continued Commitment to Economic Development
On the sidelines of the Arab Coordination Group meeting in Tashkent, ITFC signed agreements totaling $715 million with Uzbekistan, demonstrating its continued commitment to fostering economic development. Since 2018, the corporation’s engagement in Uzbekistan has amounted to $773 million in approved financing, playing a crucial role in bolstering the nation’s agricultural productivity and economic stability.