The Investment Promotion and Financing Facility Project seeks to increase competition and transparency in infrastructure finance through supporting private sector participation and market-based solutions, according to a World Bank release.

It will supplement the resources of Bangladesh's financial markets to provide long-term finance for infrastructure projects beyond the capacity of local financial institutions, the release added.

The WB's 2003 Investment Climate Assessment (ICA) in Bangladesh identified lack of access to finance, cost of finance, and poor infrastructure as primary obstacles to private sector development in Bangladesh. Bangladesh continues to have one of the lowest infrastructure performance indicators in the world. Erratic public sector services are imposing significant costs on the country and power shortages cut industrial output by US$1 billion per year.