Dhaka: The Islamic Development Bank (IDB) is likely to sign a host country agreement with Bangladesh by September next to set up a country representative office in Dhaka, aiming to boost the relationship between the two sides.

The draft of the host country deal is finalized and now it is with the Law Ministry for vetting, said an official at the Economic Relations Division (ERD).

The official told UNB that the government expects to sign the agreement either in Bangladesh or at the IDB headquarters in Jeddah by this September.

He said Finance Minister AMA Muhith is expected to be invited to the IDB head office in Jeddah to sign the deal on behalf of Bangladesh while IDB Group President Dr Ahmad Mohamed Ali Al Madani on behalf of the Bank. The IDB now has its field representative office operating in Bangladesh.

Once the full-fledged country representative office is set up either at the existing IDB Bhaban or near the building in the city’s Agargaon area, the relationship between the two sides would reach a new dimension, according to the official.

He said the full operations of IDB is now not exposed to Bangladesh and once the full operations of IDB began from the country with the launching of the new country representative office, then IDB Group member institutions like Islamic Research and Training Institute (IRTI), Islamic Corporation for the Development of the Private Sector (ICD) will expand their operations in Bangladesh.

Currently, there are some 13 development projects undergoing in Bangladesh with total IDB funding worth $ 898.38 million in power, education, health, telecommunications, marine fisheries and road communication sectors.