IIFC was incorporated as a company limited by guarantee under the Companies Act 1994 and became operational in January 2000. The company was established with support of the donors under the terms of the following agreements:
(a) A development credit agreement between the Government of Bangladesh and International Development Association (IDA);
(b) An agreement between the Government of Bangladesh and the Department for International Development (DFID) of the Government of the United Kingdom of Great Britain and Northern Ireland;
(c) A memorandum of understanding between the Government of Bangladesh and the Canadian International Development Agency (CIDA).
The above agreements were to provide financial support for a period of three years, after which IIFC was expected to operate on a commercial basis. However, a no-cost extension of one year is currently under review.
IIFC facilitates private sector participation in infrastructure development. Its mission is to be recognized globally as the country's centre of excellence in infrastructure investment and to foster the economic development of the country by promoting and facilitating private investments in infrastructure development.
The main objectives of IIFC are:
(a) To introduce, promote and assist all forms of private sector participation in Bangladesh for the development and improvement of infrastructure sectors, namely, power, energy, telecommunication, water, waste-water, transportation, water management and municipal services;
(b) To assist and advise ministries, government departments, agencies and other public sector bodies with the identification, prioritization, preparation, evaluation, award and implementation of infrastructure projects in which the private sector may participate;
(c) To create an interest in the private sector in investing in infrastructure projects in Bangladesh by disseminating information within Bangladesh and abroad about the opportunities.
The following sections provide some details on IIFC's structure and the support provided by donors in its formation.