The project - Investment Promotion Financing Facility (IPFF) - proposed by the WB is expected to get approval from the WB Board of Governors meeting in March this year and is expected to start in July, sources at the Ministry of Finance said.

Sources said the proposed project is intended to support infrastructure development projects like improvement of port facilities, developing roads and railways, and setting up of small power plants by the private entrepreneurs.

Of the total cost, the WB will provide $50 million while the government the remaining amount from the ongoing Financial Institution Development Project (FIDP) of the Bangladesh Bank (BB).

The government would initially channel $35 million from its currently running FIDP while $15 million will come through repayment of loans from the Non-banking financial institutions (NBFIs) that were previously disbursed among them under the FIDP.

"We are expecting the project to be approved in the WB's Board of Governors meeting in March this year," an official of the ministry told the news agency, referring to the completion of negotiation with the WB team in December last year.

He said the tentative schedule for starting the project is in July this year.

"The share of the WB in various projects was smaller in previous period. We are trying to ensure commitment from the WB so that it increases its share in this project," the official said.

He said the WB in principle agreed to channel more funds to the IPFF in future. He said the projects having an average size from $10 to 20 million would be benefited from IPFF.

Commissioning of small power generation plants will be given importance under the project, he said.

Sources said the banks and non-banking financial institutions (NBFIs) will channel the loan to the private sector under the scheme. Entrepreneurs and the the banks concerned will be required to share 30 percent and 20 percent of the total cost of their projects respectively. The rest 50 percent cost will be carried out from the IPFF.

"We are considering to keep the interest rate less than three-four percentage points from the prevailing market rate," said a concerned official, adding, "The weighted average of the interest rate of the six months Treasury Bills' (TBs) plus a 0.25- 0.50 percent basis point may be charged."

Sources said the Financial Institution Department (FID) of the BB will implement the project. The IPFF would be of ten-year tenure with seven years repayment period and three years grace period.