Third Public-Private Infrastructure Development Facility

Sector risks need to be carefully assessed prior to making an investment decision in a new sector. Bangladesh’s Infrastructure Development Company Limited (IDCOL) has faced challenges because of its portfolio concentration in renewable energy. While it has taken steps to move away from such concentration of risks, it still needs to further diversify its loan portfolio. Currently, IDCOL is focusing on power sector public-private partnership (PPP) projects. It could shift to other PPP infrastructure sectors, such as roads and bridges, healthcare and education, information and communication, and industrial and tourism sectors.