Bangladesh needs alternative funding sources to secure infrastructure development and reduce dependency on public fund, development partners and banking sector
Development of bond market can be a sustainable solution for infrastructure development and reducing long-term financing need, said Shams Mahmud, president of the Dhaka Chamber of Commerce and Industry (DCCI).
The DCCI president made the remark in a meeting with Planning Minister MA Mannan at the Planning Ministry on Monday, said a press release.
In the meeting, Shams Mahmud said, Bangladesh needs alternative funding sources to secure infrastructure development and reduce dependency on public fund, development partners and banking sector.
He also emphasized the inclusion of investment for skill development, blue economy, investment in innovation and research for climate change, sustainable urbanisation, 4IR technology adoption and investment and financing sources for large infrastructure development in the 8th Five-Year Plan.
"National skills mapping and development scheme need to be designed to keep pace with the 4th Industrial Revolution (4IR)," he opined.
The DCCI president also said as per the Global Infrastructure Hub report, Bangladesh needs to invest $608 billion till 2040 in water, energy, telecom, port, airport, rail and road infrastructure.
Citing that LNG is the short-term solution for the energy need, he urged for diverse fuel mix and local coal exploration to meet next 50 years' demand for long-term energy security.
Payra sea-port's development will connect sub-regional economies and reduce maritime transportation cost. Moreover, modernisation and capacity building of land ports will ease trade with regional economies, he added.
Minister MA Mannan said bond can help large infra projects to get its adequate funding as an alternative source of traditional banking sector.
He also said that Bangla Bond, recently floated in the London Stock Exchange, is encouraging to mitigate for long term financing gap opening up opportunities both for the local and foreign investors.
Mentioning that the government has already enhanced the capacity of Mongla Sea Port, the planning minister urged the business community to use the port efficiently.
He said, the government is more focused to implement the Annual Development Programme in an efficient manner.
The minister, later urged the business community to work with the government hand in hand and to invest in large infrastructure projects under Public Private Partnership model.
DCCI Senior Vice President NKA Mobin, Vice President Mohammad Bashiruddin, Directors Waqar Ahmad Choudhury, Arman Haque, Alhaj Deen Mohammad, Enamul Haque Patwary, Engineer Md. Al Amin, Md. Shahid Hossain, Md. Zia Uddin, Monowar Hossain, Nuher L Khan and SM Zillur Rahman were also present on the occasion.