The Beijing-based Asian Infrastructure Investment Bank (AIIB) will provide Bangladesh loans worth $60 million to address the country`s gas supply deficit, the AIIB said on Tuesday.
The fund will be used to help Bangladesh`s Natural Gas Infrastructure and Efficiency Improvement Project, as the lack of gas supply would "eventually impact Bangladesh`s energy security and constrain the nation`s economic growth", the AIIB said in a press release.
The project is co-financed by the Asian Development Bank (ADB), which approved a $167 million loan in November to boost Bangladesh`s natural gas production and expand transmission infrastructure.
The AIIB said on Tuesday it had also approved loans of $125 million and $100 million for Indonesia`s dam improvement project and a regional infrastructure development fund project, respectively, following prior announcements from co-financing partner World Bank to match the funding.
"Currently available financing instruments in Indonesia are limited and ill-fit for the nature and scale of the required urban and local municipal infrastructure investment," the AIIB said.