Six years after seeking Japanese investment, Dhaka outer ring road and Chattogram-Cox's Bazar highway development projects are likely to be dropped from the list of public-private partnership (PPP) funding options.
The authorities have decided to drop the projects thanks to their sluggish implementation over the years.
Instead, new proposals are set to be tabled for Japanese investment at the upcoming 6th Japan-Bangladesh Joint Platform meeting on March 18 in the city, according to sources.
These proposals include the development of four subway routes in Dhaka, a tunnel and second bridges over the Meghna and Tora rivers.
Government officials and private investors from both Japan and Bangladesh will attend the meeting, which comes 16 months after the last gathering.
The meeting will review progress on the seven projects identified so far under the PPP government-to-government arrangement established since the signing of a memorandum of cooperation in 2017.
The 2017 agreement was signed by the Japanese Ministry of Land, Infrastructure, Transport and Tourism and the Public-Private Partnership Authority Bangladesh, following two joint platform meetings.
These meetings led to the selection of six projects for potential PPP investment by Japanese private investors. Subsequently, the Japanese ministry formed sub-working groups with potential Japanese investors to develop future investment plans for these projects.
However, the Dhirasram Inland Container Depot and Airport Multimodal Transport Hub projects were dropped from the list at the outset due to objections raised by Bangladesh Railway -- the implementing agency for both projects, regarding the acceptability of the proposals.
A delegation from the Japanese ministry and investors, led by an assistant vice minister, will represent the Japanese side at the upcoming meeting, sources said.
Representatives from reputable Japanese companies, including Japanese construction giant Kajima Corporation, Marubeni Corporation, Japan Airport Terminal Company Limited, Sumitomo Corporation and Oriental Consultants Global Company Limited, will also attend the meeting.
According to official sources, the Prime Minister's Office (PMO) has decided to remove the Dhaka outer ring road and Chattogram-Cox's Bazar highway development projects from the list of public-private partnership initiatives due to slow progress.
In contrast, the Kamlapur Multimodal Transport Hub project and the Chattogram Metropolitan Sewerage project for Patenga Catchment have shown impressive progress, said officials.
Bangladesh Railway is the implementing agency of the multimodal transport hub project, while the Local Government Division oversees the sewerage project.
Another project added to the public-private partnership funding list in December 2022 -- the operation and maintenance of the 3rd terminal at Dhaka airport -- is currently under review by a transaction advisor.
Kajima Corporation has already submitted a preliminary master plan for the Kamlapur Multimodal Transport Hub, which includes a complete redesign of the entire Kamalapur station building and surrounding areas. The appointment of a transaction advisor is ongoing for the Chattogram Metropolitan Sewerage Project.
Meanwhile, the Roads and Highways Department (RHD) proposed an additional project for Japanese PPP funding in February 2022. This project includes the improvement of five local bridges: the 2nd Tora Bridge, Dhaleshwari Bridge, Postogola Bridge, Basila Bridge and Bhairab Bridge.
However, following discussions on the proposed bridges, Japanese investors expressed interest in the Tora and Bhairab bridges but declined to fund the Dhaleshwari Bridge project. They deferred a decision on the remaining two bridges, recommending further study.
The Roads and Highways Department has also temporarily withdrawn another project -- the Nabinagar-Manikganj-Paturia road -- from the PPP list, despite the formation of a sub-working group for the project on 13 October 2020.
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