Over 50 per cent of the projects taken under the public-private partnership (PPP) development model since 2009, mostly involving foreign investment, stay put despite having been enlisted as potential ones for Bangladesh's uplift.
The Public-Private Partnership Authority (PPPA) has a projection of investment no less than US$30 billion to bridge the country's infrastructure gap and meet the goals of a long-term development vision.
An allocation of Tk 54 billion was proposed for the PPP fund in the FY2025-26 budget for project preparation, viability gap funding, and early-stage incentives,
The first PPP project launched operation of Hemodialysis centre at Chittagong Medical College Hospital and National Institute of Kidney Disease and Urology. The project has successfully completed almost its concessional tenure of 10 years to next year.
According to the PPP Authority website, 80 projects have been in the pipeline for the PPP investment under different ministries since the PPP initiative taken in 2009. Of the total, 23 projects are shown at implementation stage, four at award stage, six at procurement stage and 34 others at development stage showing feasibility study going on.
"Among these projects, many have either been stalled or dropped, or very slow in progress for not getting response from the investors, noncooperation as well as government's new strategy to scrutinize the projects to find real scope of PPP modality," says one official.
During the Awami League government's tenure, projects were introduced by forming the PPPA with expectation that the government contribution be reduced through investment from renowned international companies. So far, projects from sectors like energy, health, road transport, rail and bridges, hospitality, airport etc have been enlisted.
Official sources have said despite political change, some of the PPP projects could make good progress by signing concessionary contracts, like Laldia Container Terminal at the Chittagong Port, as an example.
Patenga Container Terminal equipping, operation and maintenance project was also signed in on December 06, 2023.
The Chittagong Port Authority (CPA) on November 17 signed a concession agreement with the Denmark-based APM Terminals for development and operations for 30 years of the Laldia Container Terminal (LCT) under PPP framework.
They also say the Dhaka elevated expressway, Dhaka Bypass-like projects are also on track overcoming various challenges during the last 15 years.
However, these two PPP projects under the infrastructure sector have already crossed the construction tenure of 25 years under concessionaire tenure but have yet to complete entirely. They operate the expressway by partially opening the road.
Sources say many projects under the government-to-government PPP modality with different countries are also slow in development.
The Korean government-enlisted Meghna bridge-connecting Bhulta-Araihazar-Bancharampur road and BTMC textile mill development in Rajshahi are among the projects already ditched for loss of interest from the investors.
Development of Water Distribution and Supply Facilities at Purbachal New Town project, Shopping Mall with Hotel-cum-Guesthouse at Chittagong Railway land, medical college and modernization of railway hospital in Chittagong, economic zones at Mirersarai and Mongla, Hi-tech park projects are facing various problems during the construction tenure.
A project insider says, "Purchal new town project's water distribution and supply facilities development project has suffered due to noncooperation from the Rajdhani Unnayan Kartripakkhya."
The operation and maintenance of the 3rd Terminal at Hazrat Shahjalal International Airport project has also stalled at the negotiation stage during the current government's tenure, which, sources say, is unlikely to be resolved before the next political government formation.
The Kamalapur Multimodal Transportation Hub project has also been in good shape under the G2G PPP modality with the Japanese government, but its progress is also slow.
Projects like Jhilmil Residential, Hatirjheel Rampura Amulia Demra Bridge road and Dhaka Mymensingh expressway-like PPP projects have totally stalled despite so-called "politically motivated contract signing" during the Awami League period.
Among the projects with foreign direct investment, the DEE project is signed for an investment of $1.2 billion
The Patenga container terminal involves approximately $240 million
Dhaka Bypass cost is around $400 million and the latest contract on Laldia is expected to bring an investment worth $550 million.
smunima@yahoo.com