On 12 August 2021, The GoB and AFD signed a loan agreement under which BIFFL is receiving EUR50 million for 15 years to finance energy efficiency, renewable energy, and women entrepreneurship development-related areas. This amount is also supplemented with a technical assistance fund. Under this project, BIFFL will provide long-term concessional loans to the stated areas. The project is currently under implementation.
The EUR 50 million project funded by the Agence Française de Développement (AFD) and implemented by Bangladesh Infrastructure Finance Fund Limited (BIFFL) aims to support the Government of Bangladesh’s aim to reduce energy intensity by 20% within 2030. It is also aimed at bringing about equitable growth through support to women entrepreneurs.
FEATURES OF THE LOAN
| Amount | Up to BDT 100 crore |
| Interest Rate (Terms & Conditions Apply) | Attractive concessional rate |
| Tenure | Flexible (greater than 3 years) |
| Grace Period |
Flexible |
| Criteria | Technical | Other |
| Energy Efficiency | 20% energy savings | Equipment only |
| Renewable Energy | Solar, wind, hydro, bio etc. | Equipment & other items |
| Women Entrepreneurship | – | Women-owned |
| Step1: Contact BIFFL |
An aspiring applicant may visit the EEREWEF Finance team at the BIFFL office to discuss initial eligibility for the loan. |
| Step2: Fill out the Application Form |
Once BIFFL officials confirm the potentiality the applicant will be handed over an application form and a checklist of required documents. |
| Step3: Submit Application with Required Documents |
Upon submission of the filled-in application form along with the required documents, the BIFFL officials will review the documents and visit the project site. The applicant may be requested to re-submit some documents if any changes need to be made. |
| Step4: Review by BIFFL |
Once BIFFL finds the project eligible for funding, BIFFL will forward the file to AFD for evaluation of technical eligibility. |
| Step5: Review by AFD |
BIFFL, upon receiving NOC from AFD, will perform financial evaluation and other due diligence through reviewing the submitted documents and other information as deemed necessary |
| Step6: Approval of the Loan |
Once BIFFL is satisfied with the project evaluation and upon confirmation of social and environmental compliance of the loan proposal submitted by the applicant, BIFFL management will approve the loan proposal and issue a sanction letter. |
| Step7: Disbursement of the Loan |
Upon acceptance of the sanction letter, loan documentation will be executed & disbursement of the loan will be made by BIFFL in favor of the applying company |