Muhith sceptical of Tk 25b PPP fund spending

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FE Report
Finance minister AMA Muhith Wednesday cast his doubt about spending the Tk 25-billion fund allocated for the current fiscal year under the Public Private Partnership (PPP) scheme.
He, however, hinted at the possibility of initiating a few projects including one for installation of an elevated expressway under the PPP arrangement by the end of this fiscal.
"Already we have got some project proposals that include an elevated expressway scheme… hopefully, we will be able to award work of a few of such projects by the fiscal-end," the finance minister said.
He also added: "Although I expected a good number of projects for health and education sectors under the PPP, implementation of only one or two projects could be possible under this partnership arrangement."
He was talking to newsmen after a meeting with a delegation, led by Korean parliamentarian Lee Jung, at his Sher-e-Banglanagar office in the city.
When asked, Mr. Muhith said the proposed projects under the PPP initiative will be implemented on a Build-Operate-Transfer (BOT) basis.
The finance minister's comments came against the backdrop of the fact that the government could not finalise the proposed policy guidelines on the PPP although an eight-and-a-half month period of the current financial year had elapsed.
Mr. Muhith, while placing the half-yearly progress report on implementation of the budget for the fiscal year 2009-10 in parliament Tuesday, regretted a less-than-expected level of the PPP execution performance.
"Although Tk 25 billion was allocated for PPP initiative under the current fiscal (2009-10), we are also considering keeping the allocation at Tk 20 billion for it in this fiscal's revised budget," the finance minister told the House.
When his attention was drawn, Mr. Muhith said the main objective of placing the progress report is to help the ministries concerned correct their shortcomings, if any, in the budget implementation process.
About his meeting with Korean delegates, the finance minister said issues relating to global recession, bilateral trade and investment relations between Bangladesh and Korea were discussed.
When asked, he said: "Although Bangladesh's trade with Korea is still not sufficient enough, we are trying to boost it up."
Mentioning that Bangladesh has a lot of things to learn from South Korea, especially in fields of their planning and budgeting process, the efforts for boosting export and promotion of education etc, he said garment industry first flourished in Bangladesh with the support of Koran entrepreneurs.
About the Prime Minister's visit to China, Mr. Muhith said the main goal of the official visit is to further expand the bilateral trade and economic relations between Bangladesh and China.