Committee suggests PMO control over PPP initiative

---

Nazmul Ahsan
An official committee formed by the Prime Minister's Office (PMO) has suggested some major changes in the draft policy on Public-Private Partnership (PPP) initiative.
The report prepared by the committee, according to sources, has brought about changes in the definitions and criteria of development projects under the PPP.
The report is expected to be placed before the Cabinet meeting soon for approval.
The committee, headed by Michel Shifer, additional Secretary, PMO, has submitted its report to the principal secretary to the PMO last week.
It has identified 22 sectors, where investment under the PPP has been allowed and suggested imposition of restriction on three areas. It has changed the thresholds of investment value under the three categories of PPP projects.
Besides, the report has excluded the provision of indemnity kept in the draft PPP policy for any wrongdoing by persons involved in the process of awarding contracts or deeds under the PPP.
The committee report has suggested formation of a PPP Cell in the PMO, instead of the Ministry of Finance (MoF).
The report has identified 22 broad areas to be eligible under the PPP. These are exploration, production, transmission, and distribution of oil gas, coal and other mineral resources, construction of airports, terminals and related aviation facilities, projects on water supply and distribution, sewerage and drainage, establishment of effluent treatment plants, land reclamation, dredging of rivers, canals, wetlands, lakes and other related facilities, construction of highways and expressways including mass-transit, bridges, tunnels, flyovers, interchanges, city roads, bus terminals, commercial car parking, etc, port development (sea, river and land) including inland container terminals, inland container depot and other services, establishing telecommunication systems, networks and services including information and communication technology, establishing solid waste management projects, railway , tourism industry, economic zone, industrial estates and parks, city and property development, including services to support commercial and non-commercial activities, and Poverty Alleviation Projects.
According to the report, a project having a total investment above Tk 2.5 billion, excluding on-going capital for expansion, shall be classified as a large project.
A project with a total investment between Tk 250 million and Tk 2.5 billion, excluding on-going capital for expansion, shall be classified as a medium project.
Projects with an estimated outlay of Tk 250 million each, excluding on-going capital for expansion, shall be classified as small projects.
Earlier financial involvement of three types of projects proposed by the Board of Investment (BoI) in the draft PPP policy were much lower than that proposed by the PMO committee.
The thresholds investment values of BoI were ---large project (above $10 million), small project (above $1.0 million to $10 million) and very small project (up to $1.0 million).
The committee said the PPP Cell, the secretariat and the executing wing of the PPP Committee should be constituted as a separate cell under the PMO attached to the BOI. The proposed cell will be directly accountable to the PPP committee, the report mentioned.
The committee suggested presentation of all guidelines and PPP related regulations before the Cabinet committee on Economic Affairs for approval, instead of Cabinet meeting as suggested by BoI in their draft policy.
The draft policy drew criticism for its controversial clauses, forcing the PMO to form a committee for reviewing the draft PPP policy, sources said.
A committee member said the report excluded the provision of indemnity on the ground that it might trigger criticism and help breed corruption in awarding contacts.
The report has empowered line ministries in executing PPP related projects and their preliminary works.
It has also recommended formation of PPP advisory council, headed by the Prime Minister, and the PPP committee by Principle Secretary to the PMO.