KARACHI, July 5: The State Bank has announced to relax the debt equity ratio from 70:30 to 80:20 for all infrastructure projects including roads, bridges, mass transit and rail system. For this the SBP has amended the relevant prudential regulation.

According to a circular issued by the SBP the following other projects would also be covered under infrastructure: (i) telecommunication both basic and cellular (ii) power generation and distribution (iii) transmission or distribution of power by laying a network of new transmission or distribution lines (iv) a natural gas exploration and distribution project (v) a water supply project, irrigation project, water treatment system, sanitation and sewerage system or solid waste management system (vi) dams and canals (vii) port, shipping, container terminals, airport, aviation project, inland waterway or inland port (viii) a refinery project (ix) a pipeline project (x) any other infrastructure facility of similar nature.

Moreover, concession agreement/licence/right of way issued by the government may be accepted as collateral for infrastructure project financing in overall collateral arrangements.

The SBP circular said the central bank is in the process of developing appropriate regulatory framework for infrastructure project financing which will be instituted in due course.