Fund constraint responsible for poor infrastructure
FE Report | Monday, 11 August 2008
Finance and planning adviser Dr. AB Mirza Azizul Islam Thursday said fund constraint of the government was primarily responsible for the country's poor infrastructure and urged the private sector to make investments under public-private partnership (PPP).
"As developing infrastructure requires huge investments it is impossible for the government to do it alone," said the finance adviser.
The finance and planning adviser was speaking as the chief guest at the inaugural session of a five-day workshop organised jointly by the Board of Investment (BoI), Private Infrastructure Committee (PiCom) and Islamic Research and Training Institute of the Islamic Development Bank (IDB).
The Infrastructure Investment Facilitation Centre (IIFC) is facilitating the workshop being held at Hotel Sheraton in the city.
Inaugurating the workshop the finance adviser said despite having intentions to invest in infrastructure the government is failing to do so as its revenue earnings compared to its gross domestic product is one of the lowest in the world.
To woo private investments in PPP projects the government, however, has adopted a private-sector infrastructure guideline and constituted the high-powered PiCOM, said Dr Islam.
"Private sector investment in Bangladesh's infrastructure is one of the lowest compared to other countries in the world especially in South Asian region," said IIFC chief executive officer Nazrul Islam.
Private participation in the country's infrastructure was only 4.0 per cent during 1990-2004, compared to 76 per cent in India and 16 per cent in Pakistan, he said in the keynote presentation.
During the mentioned period private investments worth US$ 55 billion were committed for a total of 224 infrastructure projects in South Asian region.
Most of the private sector investments in Bangladesh went in power, telecom and port development, said Mr Islam, who is also the executive director of the IIFC.
Two power plants installed by private sector --Haripur 360 megawatts (MW) and Meghnaghat 450 MW -- is supplying electricity at 2.7 US cents per kilowatt-hour, which is the lowest power tariff in the world, he said.
Talking about the prospects of infrastructure projects under PPP in Bangladesh the IIFC chief said the country requires investments of over $ 9 billion in the power sector alone.
"The PPP is the appropriate system to accelerate infrastructure development and the country can overcome from the nagging power and energy shortage through this mechanism.," said president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Annisul Huq.
Private sector has money and the government has the ability to materialise any infrastructure projects under the PPP, he said.
The IDB is committed to promote any human development and infrastructure projects in IDB member countries, said the IDB Islamic Research and Training Institute chief Dr Osman Babiker Ahmed.
Terming infrastructure as the 'backbone' of any country's economic activity the BoI executive chairman Kamaluddin Ahmed said ' special care and effort is necessary for harnessing the economic potential of the country.'
"We need to bolster the infrastructure facilities to ensure a sustainable growth," Mr Ahmed said.
"As developing infrastructure requires huge investments it is impossible for the government to do it alone," said the finance adviser.
The finance and planning adviser was speaking as the chief guest at the inaugural session of a five-day workshop organised jointly by the Board of Investment (BoI), Private Infrastructure Committee (PiCom) and Islamic Research and Training Institute of the Islamic Development Bank (IDB).
The Infrastructure Investment Facilitation Centre (IIFC) is facilitating the workshop being held at Hotel Sheraton in the city.
Inaugurating the workshop the finance adviser said despite having intentions to invest in infrastructure the government is failing to do so as its revenue earnings compared to its gross domestic product is one of the lowest in the world.
To woo private investments in PPP projects the government, however, has adopted a private-sector infrastructure guideline and constituted the high-powered PiCOM, said Dr Islam.
"Private sector investment in Bangladesh's infrastructure is one of the lowest compared to other countries in the world especially in South Asian region," said IIFC chief executive officer Nazrul Islam.
Private participation in the country's infrastructure was only 4.0 per cent during 1990-2004, compared to 76 per cent in India and 16 per cent in Pakistan, he said in the keynote presentation.
During the mentioned period private investments worth US$ 55 billion were committed for a total of 224 infrastructure projects in South Asian region.
Most of the private sector investments in Bangladesh went in power, telecom and port development, said Mr Islam, who is also the executive director of the IIFC.
Two power plants installed by private sector --Haripur 360 megawatts (MW) and Meghnaghat 450 MW -- is supplying electricity at 2.7 US cents per kilowatt-hour, which is the lowest power tariff in the world, he said.
Talking about the prospects of infrastructure projects under PPP in Bangladesh the IIFC chief said the country requires investments of over $ 9 billion in the power sector alone.
"The PPP is the appropriate system to accelerate infrastructure development and the country can overcome from the nagging power and energy shortage through this mechanism.," said president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Annisul Huq.
Private sector has money and the government has the ability to materialise any infrastructure projects under the PPP, he said.
The IDB is committed to promote any human development and infrastructure projects in IDB member countries, said the IDB Islamic Research and Training Institute chief Dr Osman Babiker Ahmed.
Terming infrastructure as the 'backbone' of any country's economic activity the BoI executive chairman Kamaluddin Ahmed said ' special care and effort is necessary for harnessing the economic potential of the country.'
"We need to bolster the infrastructure facilities to ensure a sustainable growth," Mr Ahmed said.