| The Government of Bangladesh has established a special entity called the Infrastructure Investment Facilitation Centre to promote private sector participation in the infrastructure sector. IIFC provides professional services to ministries and government agencies concerning the development of infrastructure projects by the private sector. It also provides assistance to the Government in policy development and establishing regulatory frameworks for creating an enabling environment for private participation in the infrastructure sector. The paper highlights the need for an inside sponsor, draws attention to the significance of activities at the project development stage and focuses on the overall project development process conceptualized by IIFC. It discusses the different steps followed in the process and the role of IIFC at these stages. It also discusses the functions and characteristics of IIFC as an inside sponsor of private sector infrastructure projects and draws conclusions based on the experience of IIFC. |