Saturday, 30 September, 2023

79 PPP projects placed in next fiscal’s ADP

79 PPP projects placed in next fiscal’s ADP

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The upcoming Annual Development Programme (ADP) has incorporated 79 public-private partnership (PPP) projects, aimed at augmenting private sector participation in national development efforts, alongside the government.

With an estimated budget of Tk 2,368.21 billion, the initiative seeks to fast-track the country's development journey.  

A significant number of these projects are at various stages of progress. Fifteen are at procurement, seven have signed agreements, two are operational, while 27 are undergoing detailed feasibility studies.

Meanwhile, an agreement is pending for one project, seven are under construction, five await consultancy appointments, and ten have been given principle approval.

Speaking about the initiative, State Minister for Planning Dr Shamsul Alam stated, "Bangladesh requires substantial private investment for the next stage of economic development. Public-private partnerships can provide a robust solution for this need. We have initiated measures to ensure the success of this model and hope for increased participation from private sector entrepreneurs."

However, in a recent report, the Asian Development Bank (ADB) noted that despite a mature PPP environment in Bangladesh, some bottlenecks still exist. The report observed that while 76 percent of PPP investments have been in the energy sector, only 12 percent have been allocated to port facility improvements.

It further highlighted that the government is considerably behind in its goal of investing 30 percent in infrastructure, with only 1.8 percent of the GDP being invested in this segment annually. To spur momentum and save state coffers' money through competitive bidding, the ADB recommends the government to enhance its capacity.

The PPP projects include a range of key initiatives. Among these is the four-lane Dhaka bypass road project (Madanpur-Debgram-Bhulta-Joydevpur), now at the implementation stage with an estimated cost of Tk 30.52 billion.

Another key project is the conversion of the Hatirjheel-Bnashree-Ideal School and College-Amulia-Demra highway into a four-lane highway. Post-agreement, this project is budgeted at Tk 22.19 billion. Feasibility studies are underway for the four-laning of the Gabtali-Savar-Nabinagar project, which is projected to cost Tk 28.90 billion.

Additional initiatives include a tourism development scheme in Cox’s Bazar and the Khulna Khan Jahan Ali Airport project, both included in ADP’s PPP list.

The PPP portfolio also includes high-rise residential buildings in Jhilmil for low and middle-income citizens, water supply improvements in Purbachal, and the construction of a five-star hotel in Sylhet.

The operation of Shahjalal International Airport’s third terminal, a new container depot, a medical college and modern railway hospital, improved water supply to the Bangabandhu Sheikh Mujib industrial park, a light rapid transit system in Narayanganj, and the Dhaka east-west elevated expressway project are on the list.