The Multilateral Investment Guarantee Agency (MIGA), a concern of the World Bank, has pledged to stand as a guarantor to facilitate the flow of foreign direct investment into the country’s infrastructure, focusing on developing road and rail, and water resources. The news comes after a meeting between the Vice President of MIGA, Junaid Kamal Ahmed, and Planning Minister MA Mannan, where the agenda was to discuss the merits of the partnership, summarized as such:
- MIGA would encourage FDI flow into economic zones in Bangladesh.
- It would stand as a bridge for the private sector to secure big loans for infrastructural development.
- Provide political risk insurance to the value chain
- Promote prospective investment options to western lenders
According to Junaid Kamal, the agency has already facilitated about 10% investment in the power sector. The way forward is expected to promote and help the private sector secure capital to work on water development, railways, electricity, and economic zones.
Source: The Business Standard